Revolution Beauty defends AGM action as it responds to Boohoo's demand for answers

Revolution Beauty has defended the actions it took at its AGM earlier this week, whilst also addressing why it granted shares to various senior executives for free. 

The company said its actions at the AGM had been “firmly validated” by the stock market response.

"The response from the stock market and the company's wider stakeholders firmly validate the actions taken following the AGM earlier this week, which were lawful and entirely consistent with the directors' legal duties," Revolution Beauty said.

In a statement this morning, the company also demanded that "Boohoo explain what its future plans and strategy for Revolution Beauty would be if its hostile takeover of the Company's board were to succeed".

The news comes after Boohoo accused Revolution Beauty of behaving inappropriately after it defied a shareholder vote at an eventful annual general meeting earlier this week.

The group attempted to oust Revolution Beauty's CEO Bob Holt, CFO Elizabeth Lake and Chairman Derek Zissman at the AGM by voting against the re-appointment of three senior directors to the board.

Votes against the re-elections secured over 73%, but remaining independent director Jeremy Schwartz opted to defy the vote and reinstall the team afterwards.

Revolution Beauty said this was the only way to restore its shares to the AIM stock exchange, which have been suspended from trading since last year following an auditing probe.

"The actions taken by the directors after the AGM were the only reason that the company's shares were re-admitted to trading earlier this week," the company said.

"The directors did not and do not intend to frustrate shareholder democracy but were put in an extremely difficult position by Boohoo's actions."

Yesterday, the group demanded that Revolution Beauty explains why it has granted shares to its CEO and CFO for free, despite a majority of people voting to remove them from their positions.

"Bob Holt, Elizabeth Lake and other members of the management team, these were awarded when the relevant criteria were met, in particular those related to preparing the company for relisting of its shares," the company responded.

"The financial terms of the awards were not amended post the announcement by Boohoo on 19 June 2023 of its intentions to vote against the appointments of Bob Holt and Elizabeth Lake, and the awards were fully disclosed to shareholders in the group's annual report and accounts for the year ended 28 February 2022."