Elementis coup

Yesterday's boardroom upheavals at Elementis, the speciality chemicals company, represent a new twist in shareholder activism: Hanover Investors, a turnround investment specialist with a 15.2 per cent stake in the company, has persuaded sufficient other investors to back it in a coup that sees the departure of Elementis' chairman and the senior non-executive director. In comes Edward Bramson,of Hanover, as chairman, and three new non-executives: one from Hanover, plus heavyweights lan Brindle, the former UK chairman of PwC, and Ken Minton, previously chief executive of Laporte. The chief executive stays, but the heat will be on him to deliver better results.
Appointing a chairman from the institutional coup leader is unusual, and could create conflicts, while the planned change in strategy has not been spelt out particularly clearly. Still, the big City backers of the coup seem happy, and if this is what a majority of shareholders want, they are entitled to get it.
martin.dickson@ft.com www.ft.com/lombard