Vestas tells shareholders to reject call for independent audit

Vestas (OMX: VWS) has come under pressure from one of its minority shareholders, which is calling on the Danish wind turbine manufacturer to hire an independent auditor to go through the company’s accounts.

Recharge News reports that Deminor Recovery Services – a Belgium-based company specialising in investor recovery actions – wants shareholders at the Danish group’s forthcoming annual general meeting (AGM) to approve the scrutiny motion.

  Vestas, led by chief executive Ditlev Engel, says it will urge the AGM on 21 March to reject the motion, claiming it is unnecessary.

 Deminor, which was able to begin the process through the single share it possesses in the company, lists a wide range of issues it wants probed, including the implementation of accounting policies, the circumstances surrounding profits warnings issued by Vestas, and “whether the company has been over-optimistic about its revenue guidance”.

The motion also asks the AGM to approve scrutiny of the resignation of former chief financial officer and deputy chief executive Henrik Norremark.

Norremark left the company in February 2012. Vestas subsequently terminated his severance package claiming it had discovered covert deals in India involving the former executive.

Norremark has rejected his former employer’s claims and is understood to be proceeding with legal action against Vestas in Denmark.

The motion from Deminor calls for a thorough investigation of the circumstances around his departure and the company’s disclosure of what it knew.

Vestas boss Engel will not welcome the negative publicity as he continues to try and steady a trouble ship and a statement from the company has urged the Board of Directors not to be distracted.

In a statement accompanying the motion, Vestas says: “In the opinion of the board, additional investigations will be unnecessary and only obstruct the work of the board and impose needless costs on the company.”

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