Renishaw faces greater scrutiny after failing to reach required relationship agreement

17th Nov 2014 08:36

UK engineering group Renishaw said on Monday that it had failed to put in place a relationship agreement with its controlling shareholders required by the new listing rules introduced this year.The FTSE 250 group had been given until 16 November to put the agreement in place.Both chairman Sir David McMurtry, who holds an interest of 36%, and his deputy John Deer, who has a long-standing voting agreement with McMurtry, are deemed to be controlling shareholders."The controlling shareholders are of the view that the requirement to enter into a relationship agreement infringes upon their rights as shareholders and their track record demonstrates that they act in the best long-term interests of the company," a statement from Renishaw read.The Financial Conduct Authority has been informed and the group will now face enhanced levels of scrutiny, meaning all transactions with the controlling shareholder will have to be approved by shareholders.