AMP directors have come under more fire amid talk the scandal-struck wealth manager’s board will discuss the future of chair Catherine Brenner at a special weekend meeting.
The Australian Council of Superannuation Investors, representing 38 funds including AustralianSuper, REST and HOSTPLUS, has instructed its members to vote against director election and remuneration resolutions at AMP’s annual general meeting on May 10.
The call was issued after the banking royal commission on Friday heard the embattled $11.8 billion firm could face criminal charges over the fees-for-no-service issue.
The Australian reported on Friday the board of directors was set to meet on Sunday to consider the fate of Ms Brenner.
AMP declined to comment on the reported crisis meeting but acknowledged the “seriousness of the closing submissions” made by the counsel assisting the royal commission.
“We are reviewing those submissions closely and will respond fully next week,” an AMP spokeswoman said.
“The Commissioner will have AMP’s submissions in relation to these matters before making any findings.”
Senior counsel assisting the commission Rowena Orr QC outlined a series of possible misconduct findings against the wealth manager, including breaches of the Corporations Act that carry criminal penalties.
AMP has had $2.2 billion wiped from its market value in the past fortnight in response to the allegations and admissions heard at the inquiry.
Its share price closed on Friday at $4.02 – its lowest point since August 2012.
ACSI, whose members own an average of 10 per cent in all ASX200 companies, said Friday’s statement from the royal commission only reinforced their view about AMP’s directors.
“We think it is appropriate that accountability for the events and conduct revealed over the past ten days rest with the board,” ASCI chief executive Louise Davidson said in a statement.
ACSI member First Super welcomed the decision, urged other super funds to fall into line and called on the rest of the board to “seriously consider their individual and collective positions”.