Tricky timing

25 July 2017 By Olaf Storbeck

The Dutch paint maker has to convene an emergency meeting to formally appoint Thierry Vanlancker as the new CEO. Its timing is designed to prevent irate activists from forcing a vote on Chairman Antony Burgmans’ future. This is an ill-advised disregard for shareholder democracy.

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Dutch paint and coatings maker Akzo Nobel said on July 25 that it will hold an extraordinary general meeting on Sept. 8.

The only item on the agenda that shareholders will be able to vote on is the appointment of Thierry Vanlancker, the new chief executive, as a member of the Board of Management. Vanlancker on July 19 replaced Ton Buechner who stepped down with immediate effect because of health reasons.

Akzo said the Sept. 8 meeting will also include a discussion of its rejection of a 25 billion euro hostile takeover attempt by U.S. rival PPG Industries.

Burgmans said on July 25 that he planned to retire in April 2018, at the end of his third term as Akzo’s chairman, “barring any exceptional circumstances”.

Akzo on July 25 reported a 6 percent drop in operating profit in the second quarter to 461 million euros, below the 496 million euros expected by analysts polled by Reuters. The Amsterdam-based company said weak demand in various markets and higher raw material costs were responsible for the dip.

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