Nov 10 (Reuters) - London Stock Exchange Group will fix a date within three weeks for a shareholder vote on the removal of Chairman Donald Brydon and retention of CEO Xavier Rolet at the behest of activist investor TCI Fund Management, it said on Friday.
TCI Fund Management had called for a vote to remove Brydon, saying the company had not explained why Rolet was leaving and that it also wanted the company to persuade Rolet to extend his tenure until 2021.
“LSEG will meet its obligations in respect of the requisition,” the bourse operator said in a statement on Friday, indicating that it would hold the shareholder meeting “as soon as reasonably practicable”.
The company must send out notice of an extraordinary general meeting (EGM) within 21 of receiving TCI’s letter on Thursday. Once sent, it must hold the meeting within 28 days, meaning it would take place before the end of the year at the latest.
LSE said on Oct. 19 that Rolet would step down by the end of 2018, nearly a decade after he took charge. During his tenure LSE’s stock has risen from about 6 pounds to 37 pounds.
The removal of a director has to be passed by a majority of those voting at the EGM.
TCI first complained about Rolet’s planned exit in a letter to the LSE last Friday, in which it said that Brydon and the board were trying to force out the CEO, an allegation denied by LSE on Monday.
Reporting by Noor Zainab Hussain in Bengaluru and Huw Jones in London; Editing by David Goodman