IGA supplier Metcash is standing by its chairman Rob Murray who is facing pressure to step down for his involvement in the failure of iconic Australian brand Dick Smith.
The Australian Shareholders Association (ASA) says Murray, the former chairman of Dick Smith, should consider quitting or at least stand for re-election at the company’s annual general meeting in August.
The ASA issued its call on Wednesday as Dick Smith administrator McGrathNicol released its report to creditors, saying creditors of the collapse retailer stood to lose in excess of $260 million.
The administrator’s report says it is too early to draw conclusions regarding the nature of any claims that could be brought over the failure of Dick Smith
Receivers Ferrier Hodgson have called 10 former Dick Smith executives and directors, including Mr Murray, to face a public examination in the NSW Supreme Court in September as part of the investigation into the failure.
ASA director Allan Goldin said while the McGrathNicol report does not attribute responsibility to former directors and executives, the association believed that Murray should resign as Metcash’s chairman or stand for re-election at the AGM.
“When examining a director in a listed company, the behaviour and performance of other companies they are involved with is of vital importance,” he said in a statement.
Metcash said Murray had the company’s support.
“We are confident Mr Murray has sufficient capacity to fulfil the role of chairman at Metcash,” a Metcash spokeswoman told AAP.
Murray reportedly told Fairfax Media he was disappointed that a letter from lawyers for Ferrier Hodgson had been leaked to media.
“I am confident that we were diligent and compliant at all times in exercising our duties as company directors,” Murray told Fairfax.
