Gildan and Browning West battle over particular shareholder assembly request

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Gildan Activewear Inc. has accused a U.S. funding fund of breaking U.S. antitrust guidelines in rising its stake within the firm and raised issues about its skill to request a particular shareholder assembly to switch of majority of its board.

Browning West is looking for the assembly to switch eight of the corporate’s 11 board members together with chair Donald Berg, and reinstate Gildan co-founder Glenn Chamandy as chief govt.

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Gildan alleges the fund didn’t notify U.S. regulators and adjust to a 30-day ready interval earlier than it elevated its stake within the firm to the purpose the place it might request the shareholder assembly.

Browning West says the corporate is looking for to invalidate its assembly request primarily based on the false premise that it violated the U.S. Hart-Scott-Rodino Antitrust Enhancements Act.

In a letter to shareholders, it mentioned it poses no substantive antitrust issues to any involved authority and accused the Gildan board of making an attempt to keep away from holding the particular assembly.

Gildan has been embroiled in a battle over who ought to lead the corporate because it introduced late final 12 months that Chamandy would get replaced as chief govt by Vince Tyra. A number of Gildan shareholders, together with the corporate’s largest, Jarislowsky Fraser, have sought to have Chamandy reinstated.

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