Corre Energy, the Dublin-listed power storage developer, is pressing ahead with the appointment of Rune Eng as interim chairman in preparation for the departure of chairman Frank Allen at its upcoming annual general meeting.
Institutional Shareholder Services, a major advisory firm, has recommended that shareholders register a protest vote against the re-election of Mr Eng as a member of a depleted board, given that there would be no women around the table.
[ Corre investors urged to reject plan to allow unchecked 20% share saleOpens in new window ]
Mr Allen, former chief executive of Dublin’s Luas rail project and current chairman of the Housing Finance Agency, had indicated he was not available for reappointment, ISS noted.
This would leave Mr Eng as the only non-executive director, subject to investors not following ISS’s advice to vote against his re-election.
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In a statement on Monday, Corre said Mr Allen intends to stand down from the board upon expiry of his three-year tenure as chairman owing to professional commitments outside of the company.
“It coincides with a planned transition of the board composition to facilitate the company’s growth,” the group said.
Mr Allen, who has been chairman prior to and since the company’s IPO in 2021, has overseen Corre Energy’s “initial phase of growth, including the delivery of key commercial milestones and fundraising activities”.
Most recently, this includes the launch of the process led by Rothschild & Co to manage and secure investor interest in the company.
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If all resolutions are passed at the agm, Mr Eng, a non-executive board member, will fulfil the role of interim chairman, while the responsibilities of the audit and risk committee will be consolidated into the main board of directors.
The company said this interim arrangement will exist until future changes are announced.
As part of the planned board transition, a process has already begun to appoint non-executive directors to the board and to organise board committees to meet the future growth and needs of the company.
“This is designed to align with the planned investment process which is progressing well, as well as commercial scale-up opportunities currently being actively pursued by the company,” Corre said.
Keith McGrane, chief executive of Corre Energy, said: “We are hugely grateful for the commitment, guidance and support that Frank has provided prior to and since Corre Energy’s IPO.
“He has helped navigate the company through many critical milestones, including securing offtake agreements for projects, expanding our pipeline, overseeing several successive rounds of funding, and positioning Corre Energy as one of the foremost LDES [long duration energy storage] companies in the market.
“Our focus remains on progressing the significant investor interest in the company and ramping up our activities to deliver maximum value to our shareholders and wider stakeholders.
“To support this, our board will now transition to support our next phase of growth, and we look forward to making announcements in due course regarding the appointment of new non-executives and senior executives.”
Corre is searching for fresh investment. ISS urged shareholders to reject a plan to give the company the right to raise up to 20 per cent of its market value in a share sale without first giving them the option to participate.
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