Departing Cromwell chairman Geoff Levy lashes second attempt to get Gary Weiss on board

Departing Cromwell chairman Geoff Levy says the issues against the original nomination of Gary Weiss remain unchanged.

Departing Cromwell chairman Geoff Levy.

Departing Cromwell chairman Geoff Levy has taken a shot at dissident shareholder ARA Asset Management as he steps down after 12 years in the role.

ARA has campaigned for Mr Levy’s departure and is lobbying for corporate raider Gary Weiss to be installed to its board at an extraordinary general meeting after he narrowly missed out on being elected last year.

Mr Levy, Cromwell’s non-executive chair since 2008, oversaw the company through the global financial crisis and then its growth including its push into Europe and listing of a Singapore fund.

The veteran, who also chaired Investec Bank, said at Cromwell’s meeting last November, he would retire.

In a note to Cromwell staff obtained by The Australian Mr Levy lashed the second attempt to get Dr Weiss on to the board.

“Many of you will have seen that ARA has, again, indicated an intention to nominate Dr Gary Weiss as a director, despite that appointment being rejected by the vast majority of Cromwell security holders and independent proxy advisors just three months ago,” he said.

“I know Gary personally and respect him professionally and as an individual. However, the issues that led to the board carefully considering, and then recommending against his original nomination remain unchanged,” he said.

Cromwell has called out ARA as a competitor for both assets – they vied for the same building in Brisbane last year – and as a fund manager. ARA has argued that as a 23.7 per cent shareholder it is entitled to board representation.

“We again urge Cromwell to see reason and acknowledge the obvious need for proprietorial representation around the board table. Representation that would deliver improved governance and decision-making for the benefit of all securityholders,” an ARA spokesperson said in a statement to The Australian.

Mr Levy said that notwithstanding the security holders vote at the AGM, ARA continue to agitate. “We have answered their questions, provided access to our people and offered to meet in person with its CEO, including as recently as a few weeks ago,” he said.

“Unfortunately, all attempts to engage with them to initiate a considered dialogue have been unsuccessful. Instead, we continue to see spurious performance and governance allegations in the media,” he said.

Mr Levy said that with the consistent agitation and the holdings of ARA, as well as the Singapore-based Tang family, whom Cromwell has argued are associated with ARA, despite their denials, it was now an “opportune time” to consider “value creating” options.

Cromwell has tapped both UBS and Goldman Sachs to handle the review.