Gulf Keystone strengthens board further

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Gulf Keystone strengthens board further

Gulf Keystone Petroleum (GKP) has appointed a new non-executive director, further expanding its board as it prepares to apply for admission to the London Stock Exchange's standard list.

Andrew Simon will join the board with immediate effect. He has 23 years' management experience at chemicals and materials company Evode Group and is also a non-executive director of FTSE 100-listed building materials supplier Travis Perkins (TPK).

Gulf Keystone said Simon was "ideally placed to assist the company as it seeks to move from AIM to the standard segment of the official list later this year".

Four other non-executive directors, Jeremy Asher, Thomas Shull, John Bell and Philip Dimmock are also joining the company, as agreed at its AGM on 25 July.

Gulf Keystone originally advised shareholders to vote against these four candidates when they were proposed by one of its largest shareholders, M&G Recovery Fund.

M&G and Gulf Keystone were in conflict for much of July, as M&G accused Gulf Keystone of poor corporate governance and "excessive" executive pay.

However, this was resolved when Gulf Keystone approved M&G's four candidates and M&G agreed to vote for Gulf Keystone's chosen non-executive chairman, Simon Murray.

Gulf Keystone plans to appoint "at least one other independent non-executive director" in the near future in preparation for admission to the standard list.

Investor view

"[It] looks like the Gulf Keystone board of directors are still wearing their summer shorts," commented Interactive Investor discussion board user 'Hub'.

"When will these guys grow up?

"The fifth non-executive director seems rushed through purely to balance the 'power' [of the four M&G-proposed directors] which seems rather childish."

Investors also complained about the lack of updates on other areas of the business, and 'TRINDERM' was especially critical of the company's "ridiculous" target of FTSE admission by September, adding that it was "utter madness from Todd Kozel to suggest it may happen".

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