MONTREAL — Investment manager Jarislowsky Fraser says it will support a move by U.S. investment firm Browning West to replace five directors at Gildan Activewear Inc. in an ongoing fight over who should lead the company.
Charles Nadim, head of research and portfolio manager, Canadian equities, at Jarislowsky Fraser says the firm intends to support Browning West and its intent to requisition a special meeting of Gildan shareholders.
The dispute with the company comes after Gildan's board replaced Glenn Chamandy as chief executive late last year with Vince Tyra. Chamandy has said he was terminated without cause after four decades with the company.
Browning West wants to replace five incumbent directors, appoint Michael Kneeland as chair and reinstate Chamandy as chief executive.
In addition to Jarislowsky Fraser, which is Gildan's largest shareholder, Turtle Creek Asset Management Inc. and Oakcliff Capital have said they will back the Browning West nominees.
For its part, Gildan's board has said the decision to remove Chamandy came after he agreed to a succession timeline only to later ask to stay on beyond the original plan.
In a letter to shareholders, Gildan chair Donald Berg, along with the board's committee chairs, have said the board's trust and confidence in Chamandy had eroded as it worked to hold him accountable for delivering the next chapter of the company's long-term growth.
This report by The Canadian Press was first published Jan. 5, 2024.
Companies in this story: (TSX:GIL)
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