July 16th, 2024

Browning West files lawsuit to ensure Gildan annual meeting happens ‘without delay’

By The Canadian Press on March 12, 2024.

MONTREAL – A U.S. investor looking to replace a majority of the board of directors at Gildan Activewear Inc. says it has filed a lawsuit against the clothing manufacturer and its board to ensure it holds its annual meeting “without delay and with the oversight of an independent chair” on May 28.

In a press release, Browning West says its application in Quebec Superior Court alleges Gildan and its board have pursued “a strategy of entrenchment, obfuscation and disparagement of dissenting shareholders” while prioritizing their own personal interests.

The investor says it believes the board’s “tactics indicate that the current directors will do anything to preserve their current positions.”

Gildan has been embroiled in a fight over who should lead the company since it announced late last year that co-founder and then-CEO Glenn Chamandy would be replaced by Vince Tyra, saying the former had no credible long-term strategy and had lost the board’s trust.

Browning West, with the support of Gildan’s largest shareholder Jarislowsky Fraser, has been trying to replace eight members of the Gildan board in a move to reinstate Chamandy. It has said it would offer a slate of candidates for election at the company’s annual meeting after initially seeking a special meeting of shareholders.

Chamandy has said he presented a comprehensive long-range plan in October that showed meaningful growth prospects for Gildan over the next five years.

This report by The Canadian Press was first published March 12, 2024.

Companies in this story: (TSX:GIL)

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