Construction and development group GRD Ltd has moved to appoint former premier Richard Court as chairman, following the decision by Brettney Fogarty to step down.
Mr Fogarty’s decision comes less than a month after he quit the CEO position of the company he founded, ending his reign as one of the few remaining executives holding both the chairman and managing director roles, a practice increasingly frowned upon in contemporary corporate governance.
Mr Court has been appointed as the chairman-elect until the AGM, scheduled for Monday May 29 2006, while Mr Fogarty will continue as a non-executive director. Mr Court was previously the company’s non-executive director.
Mr Fogarty remains the company’s biggest shareholder with a beneficial interest of almost 30 per cent of the stock.
His family company, Quininup Holdings Pty Ltd, is GRD’s major shareholder with 55.5 million shares representing a 28.9 per cent interest as at March 31.
At current share price, Mr Fogarty’s shareholding is estimated to be worth more than $120 million.
GRD shares have travelled well in the past 12 months, rising from around $1.85 a year to trade above $2.40 this week, though this is well down on highs reached in February when the stock went over $3 a share.
Earlier this month, GRD announced recently appointed chief executive Cliff Lawrenson would be appointed as a director of the GRD board, while Peter Bryant would be appointed to fill the role of company secretary vacated by Mr Lawrenson.
Mr Lawrenson joined GRD in 2004 after seven years with CMS Energy Corporation in the US as vice-president financial, advisory and strategic planning.
He has worked extensively in investment banking around the world, including with Macquarie Bank. He is also on the board of OceanaGold Ltd.
According to WA Business News’ 2006 Book of Lists, GRD has 350 engineers among a staff of 440 full-time employees.
