Gold mining boss and banking veteran Peter Hambro is expected to be ousted from the board of the company he founded in 1994 as rebel shareholders prepare to vote against his re-election at an annual general meeting (AGM) this week.
Shareholders owning around a 40 per cent stake in the company said they will vote against him and three other non-executive directors at the miner's AGM on 22 June, and replacements are already lined up.
Shareholder advisory group ISS also recommended investors vote against Hambro after initially advising against supporting any of the rebel shareholders' proposals. ISS said it recognised a "compelling case" for board-level change after receiving additional information. Proxy advisory firms Glass Lewis and Pirc recommended shareholders vote in favour of the current board.
Hambro has stepped down as chairman of the miner and pushed back against allegations of corporate governance shortcomings. Petropavlovsk has lost more than 99 per cent of its market value since its 2010 peak when it was valued at over £2bn. On Friday, the miner's shares closed at 7.87p.
The UK's Takeover Panel last week ruled shareholders Renova, M&G and Sothic Capital were not working in concert to take control of Petropavlovsk.
Russian billionaire Viktor Vekselberg's Renova holds nearly a 15 per cent stake in the gold miner.
Other shareholders DE Shaw, M&G and Sothic, which together hold 25 per cent, said in a statement last week they had no intention of taking control of the company and were not acting with Renova.