Gulf Keystone caves into shareholders over nominated directors

22nd Jul 2013 10:28

Gulf Keystone has ended a boardroom fight, saying it would no longer oppose four nominees as non-executive directors put forward by shareholders M&G and Capital Research Global Investors.The Iraqi Kurdistan-focused oil explorer announced that it has reached "a constructive agreement" with M&G and Capital Research Global Investors, which together own more than 10% of the company, and other major shareholders regarding the composition of the group's board of directors.Gulf had last week rejected the four candidates for lacking "senior level of public company experience"."I am pleased that unity of purpose has been restored amongst the company and its largest shareholders," said Simon Murray, Independent Non-Executive Chairman."This increase in the number of independent non-executive directors will ensure that Gulf Keystone meets the heightened corporate governance standards required as part of the company's planned move to the standard segment of the main market that both the board and the shareholders have been seeking, in a manner that provides reassurance to all."Ali Al-Qabandi, a co-founder and Business Development Director, and Mehdi Varzi, who chaired the group's remuneration committee, have withdrawn consent to be considered for re-election after M&G and Capital said they would vote against them.Varzi and Kozel, who were up for re-election on July 25th, were under the microscope following concerns over executive pay and bonuses.The AIM listed company added that it was on track to achieving its target ramp up in production to 40,000 barrels of oil per day by the year end.Shares climbed 3.62% to 179p at 10:47 on Monday.RD