The wife of a broker involved in a £300 million (€361m) flotation of Boohoo. com, an online fashion retailer, has a £22 million stake in the business.
Clare Hughes, wife of Richard Hughes, a director and co-founder of Zeus Capital, has a 3.93 per cent share in the £560 million company. Mr Hughes was himself a director of the business, known as Wasabi Frog, until he resigned three weeks ago.
Under Aim rules people with a relationship to the director of a nominated adviser or Nomad,which is responsible for policing behaviour on the more lightly-regulated junior market, can hold up to 10 per cent of a business.
However if they own a “significant” stake of 3 per cent or more they must ensure “adequate safeguards are in place to prevent any conflict of interest”.
A Boohoo spokesman said Ms Hughes, along with the board, would retain her full stake for at least 18 months after the float so there was no conflict.
The role of Boohoo director Petar Cvetkovic is also in the spotlight. He is a non-executive director of Crawford Healthcare Holdings, a company owned by Mr Hughes.
He is also chief executive of DX Group, which floated last month and has Zeus as its Nomad.
If he is classed as an “associate” of Mr Hughes, Aim rules forbid Zeus acting as Nomad.
Boohoo said: “He is not viewed as an independent. He is an expert in logistics and has been on the board for six years. He is a shareholder.”
Zeus and Mr Cvetkovic declined to comment.
The London Stock Exchange said there was no definition of associate, and each case was dealt with individually.
Boohoo.com is bolstering its board by recruiting four independent directors, including Peter Williams, formerly of Asos, the online clothes retailer, as the chairman. – (Copyright The Financial Times Limited 2014)
