Pictured: Founder, Steve Rawlings

In recent business news, it has been announced that Steve Rawlings, the Lakehouse Founder, has recently reached out to company shareholders to explain to them why he should return to the Lakehouse board; a move which may see Steve Rawlings, alongside shareholder Slater Investments (combined, owning some 21.56% of share capital), potentially overthrow the current board of the company.

The move comes amidst criticism from Mark Slater, of the aforementioned Slater Investments, highlighting a “serious governance deficit” within the board itself. Effectively, the proposal is aimed to see the restoration of shareholder value, as explained by Mark, with the appointment of brand new, non-executive directors for the board.

One of the primary reasons for the communication with shareholders is seemingly as a result of communication already had between the board and company shareholders, with accusations made with regard to the board “attacking” those candidates proposed in shareholder circulars – something which has been noted to be in stark contrast to conversations that Mark states have been had in private. One of the key concerns highlighted by the board to the company shareholders has been with regard to concerns over compliance with UK Corporate Governance Code should the non-executive directors be appointed to the board.

In opposition to this, Lakehouse’s Chairman, Chris Geoghegan stated to shareholders that Steve Rawlings remains unsuitable as a director in the business, ever since its listing on the stock market back in 2015. Highlighting Steve’s history with the company thus far, Chris explained how a lack of involvement within the group, as well as his previous record with the company dating back as far as 2012, also combined with a lack of experience in limited company directorship, does not support the conclusion that he has the skills required to make a meaningful contribution to the board of directors.