Following the shareholder meeting in November, when 31.6% of votes received were against his re-election, the board has been talking to its major investors and proxy companies to get their views on corporate governance and other issues.
Noting discussions of ‘overboarding’ in corporate governance circles in the past year, with shareholders becoming concerned if directors have too many competing commitments to other listed companies, the board of Clinigen said it recognises that it is best practice for the chairman not to be a member of the audit committee.
Consequently, Allen will continue as chairman of the nominations committee and as a member of the remuneration committee, the company said.
The board stressed that Allen “provides effective leadership and manages board meetings extremely well” and noted the recent announcement that he will step down as chairman of AIM-listed Diurnal Group next month.
Shares in Clingen were up more than 5% to 822p on Tuesday afternoon.