Credit, Collections & Insolvency News
The Financial Conduct Authority (FCA) has opened an investigation into subprime lender Amigo Loans (The Richmond Group), the company has announced In a stock market update.
Amigo said the FCA started an investigation on Friday into whether Amigo’s creditworthiness assessment process and its governance oversight of this was compliant with regulations.
News of the investigation came alongside an escalation in a dispute between Amigo and the company’s founder, James Benamor.
Benamor, owns around 60% of Amigo, is seeking to oust Amigo’s entire board over what he claims in the mismanagement of the business.
In a statement, the company said that it has filed an application today with the High Court of Justice for an injunction to prevent Richmond Group Limited from voting in favour of the resolutions to appoint Sam Wells and Nick Makin as directors of Amigo and to remove each of the current members of the board proposed in the upcoming general meeting ( to be held on 17th June 2020.
All directors have made clear that they are willing to step down provided it is by way of an orderly succession and have no interest in prolonging their appointment. However, the board has been left with no option but to take legal action against Richmond following its continued refusal to abide by the terms of the relationship agreement entered into between Richmond and Amigo on 29th June 2018.
Stephan Wilcke, Chairman of Amigo, said “The Board has offered to leave and will do so, but it must be through an orderly process. We cannot risk the Amigo group’s ability either to conduct its FCA regulated activities or to continue as a London-listed company operating in accordance with the UK Corporate Governance Code.”
“Amigo is a publicly listed, regulated company, not a wholly-owned private subsidiary. We are duty-bound to protect the interests of all shareholders and to prevent a majority shareholder acting in breach of the Relationship Agreement.”
The company says that the board has made the Injunction application for the sole purpose of ensuring that there is an orderly process for the replacement of the board and in accordance with the process mandated by the Senior Managers Regime. All directors wish to reiterate that they have no desire or intent to remain on the board once replacements have been found in accordance with Amigo’s regulatory requirements.
