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Sports Direct's shareholders vote for change

Mike Ashley's company is under significant pressure to change its ways
September 8, 2016

Shares in Mike Ashley's controversial sporting goods company Sports Direct (SPD) fell 10 per cent on the day of the company's annual meeting, which was held this week alongside an 'open day' for investors at the group's Shirebrook warehousing facility.

IC TIP: Sell at 332p

Just a day earlier, a report from law firm RPC revealed "significant shortcomings" in Sports Direct's corporate governance policies and employment practices. The board immediately promised to rectify these, although it said a more thorough investigation must also be conducted - findings from which won't be available until 2017 at the earliest. For now, the board - which includes majority shareholder Mr Ashley - has voted for chairman Keith Hellawell to stay in his role despite his offer to resign.

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