(Reuters) - Speedy Hire Plc's (L:SDY) largest investor, Toscafund Asset Management LLP, has called for the removal of the industrial tools and equipment rental company's executive chairman.
Asset manager Toscafund, which owns a 19.5 percent equity stake in Speedy Hire, said Chairman Jan Astrand has been "indecisive as a business leader" and that he failed to consult with shareholders regarding key board appointments.
Speedy Hire has struggled since a botched implementation of an IT system last year. That and a shortage of equipment to rent out pushed the company into a full-year loss and initiate a review of its operations.
The company's Chief Executive, Mark Rogerson, also resigned 18 months into the job after failing to turn the business around.
Toscafund, which requested a general meeting to vote on a proposal to oust Astrand, said the management change was necessary for the company to move forward with its turnaround plan.
Astrand's role was "incompatible" with the UK corporate governance code since the company already had a CEO, the asset manager said, while proposing the appointment of turnaround specialist David Shearer to Speedy Hire's board.
As chairman of Mouchel Group Plc from 2012 to 2014, Shearer spearheaded its turnaround, paving the way for its sale to construction company Kier Group Plc (L:KIE), said Toscafund, which has over $3 billion (£2.2 billion) of funds under management.
"These changes to the Board are necessary to protect and enhance shareholder value at Speedy Hire," Toscafund said.
Since Astrand's appointment as chairman in July 2015, Speedy Hire's shares have fallen by nearly a third up to Friday's close. They were trading largely unchanged at 33.8 pence at 0954 London time on Monday.