PricewaterhouseCoopers (PwC) has been confirmed in its appointment as auditor to Telford Homes at the company’s AGM on 11 July. However, there was a significant shareholder revolt over the appointment with 44% voting against the firm. The highest vote against any other proposition put to Telford Homes’ shareholders was just over 10%. Some 28% of the company’s shareholders were represented and voted at the AGM.
Institutional Shareholder Services (ISS) the world’s leading provider of corporate governance and responsible investment solutions had called on shareholders to vote against the appointment.
ISS had called for the vote against PwC’s appointment following fines totalling £4.8m levied against PwC and two of its partners over its work for technology services provider Redcentric. ISS said: “To be very clear, no concerns have been identified with the Telford Homes plc's accounts,” but added, “…rather concerns are around the effectiveness of the processes in use by the auditors signing off these accounts. It is also worth noting that there is no statement within the annual report over the effectiveness of the external auditors.”
Telford Homes is currently subject of an agreed cash takeover by US developer CBRE Group worth £267.4m.