Embattled McGrath Unveils New Directors
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Shares in battling real estate agency group, McGrath rose nearly 4.9%on Monday, ending at 43 cents after a new chairman and director were announced in time to stave off the company being in breach of ASX listing rules for minimum board requirements.
Earlier in the day John McGrath, the founder of the company, appointed Kerry Stokes’s former chief financial officer, Peter Lewis, as the new non-executive chairman.
He will be joined by new non-executive director Andrew Robinson, a Sydney lawyer.
Real estate agency McGrath entered a trading halt last Thursday after reporting a $25.5 million loss in the six months ending December 31 and revealed that the board and CEO (with the exception of Mr McGrath) would be quitting on Friday and today.
Chairman Cass O’Connor and two directors Elizabeth Crouch and Cath Rogers resigned late on Monday
In an ASX release late on Monday, Mr McGrath said he was ''delighted to welcome Peter and Andrew, who bring a wealth of public company experience and expertise to the board''.
"The new leadership team brings a broad range of complementary skills to the group and I look forward to working closely with them to restore shareholder wealth and the McGrath business to strong growth," Mr McGrath said.
"I thank the previous board members for their contribution."
Mr McGrath and the new board will now developing a new corporate plan for the group, including finding a senior management team structure and a CEO. McGrath said it will make an announcement to the market in due course.
Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.
At the AFR he was a finance writer, Finance Editor, News Editor and Chief of Staff. At the Nine Network he was supervising producer of Business Sunday for more than 16 years. He has also written for other online and analogue print publications here and overseas.