Embattled funds management business Blue Sky has announced a revamp of its board structure that will see the departure of long-serving director John Kain.
Blue Sky Alternative Investments has made wholesale changes to its board and management structure as it struggles to regain credibility with shareholders following the release of a highly critical report by Glaucus Research in late March.
Glaucus Research, a California-based hedge fund and short-seller, alleged Blue Sky had materially overstated its fee-earning assets under management (FEAUM).
Blue Sky's share price has decreased by almost 80 per cent to $2.54 since the publication of the Glaucus report.
Following chief executive Rob Shand's resignation on 23 April, Blue Sky released an update on Monday 7 May in which it withdrew its underlying net profit after tax guidance for 2018-19 as well as its FEAUM guidance for 2018-19 and 2019-20.
The company also announced a shake-up of its board and management structure, which will see the departures of chairman John Kain and chief investment officer Alexander McNab.
"Chairman, Mr John Kain, having served as a director of Blue Sky group companies since 2007, will no longer be deemed independent from this year's AGM," said Blue Sky.
"To ensure Blue Sky has an independent chairman, Mr Kain will step down as chairman once a replacement has been appointed," said the statement.
Executive director Tim Wilson will also retire from the board as the Blue Sky "moves [towards] a majority independent board of directors".
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