Cattles' investors call for directors to resign

The struggling Batley-based group, which is winding down its core Welcome Finance loan book after an accounting scandal, faces a series of resolutions posed by disgruntled private investors.

They will be voted on at its AGM at the end of the month in Leeds.

Shareholders, who have been told their shares have negligible value, are calling for the resignation of executive chairman Margaret Young, as well as non-executive directors David Haxby, Frank Dee and Alan McWalter.

They claim non-executive directors failed in their duties, let accounting errors go unnoticed and failed to act in shareholders' interests.

Shareholders at an extraordinary meeting in December called for the company to be wound up, but were defeated by creditors.

Cattles has urged shareholders to vote against the special resolutions, insisting they are not in the company or its stakeholders' interests.

"Non-executive directors have provided leadership and continuity, dealing with a range of challenges," said Ms Young in a letter to shareholders.

She said non-executives regularly challenged former executives, but were given incomplete and misleading information.

"Shareholders' interests have been protected by the board's efforts to avoid what might otherwise have been the immediate financial collapse of the company," added Ms Young.

Ms Young also confirmed the group is being investigated by City watchdog the Financial Services Authority.

Ms Young and Mr Haxby are also up for re-election at the AGM.