Frances Ball 12 Jul 2019 02:38pm

Over 40% of Telford shareholders rebel on PwC reappointment

Telford Homes has seen 44% of its shareholders vote against reappointing PwC, based on concerns over its lead audit partner, who also audited Redcentric

Following the vote the resolution to reappoint the auditor was still passed.

Advisory group Institutional Shareholder Services (ISS) had raised concerns at Telford over reappointing PwC, which has audited the housebuilding company since 2006.

Arif Ahmad, PwC lead audit partner for Telford, had also audited Redcentric when accounting issues were missed. Redcentric shares fell by two-thirds in a day when it admitted the error.

At Telford’s AGM this week, 44% of its shareholders voted against PwC along ISS guidance lines.

“The board believes that these votes against were based on recent adverse publicity in respect of fines levied against PwC in relation to their audit of an IT services company which, following an internal review, had been found to have mis-statements within its accounts”, a spokesperson for Telford Homes confirmed.

“However, the company will engage with shareholders to discuss the reasons for the votes against this resolution”, they said. The board proposed that PwC be reappointed.

PwC declined to comment on the issue.