A FORMER non-executive director of Alliance Trust has written an open letter to shareholders giving his backing to hedge fund Elliott Advisors in its bid to get three new members on the board.
Tim Ingram, on the board at Alliance between 2010 and 2012 and also head of its remuneration committee, further suggested that the Dundee Trust had underperformed in recent years and its chief executive Katherine Garrett-Cox is overpaid.
Mr Ingram, now chairman of the Wealth Management Association, claimed he had no link with Elliott but said Alliance had not addressed concerns about its refusal to consider outsourcing any of its investment portfolio to other managers or its loss making subsidiaries.
He wrote: "I will be voting my shares in favour of the three new directors joining the board and would suggest that any other shareholder seeking better returns does likewise. The overall performance of Alliance Trust in the medium term has been dismal."
Alliance Trust said: "The board has written to shareholders and clearly set out its reasons for rejecting Elliott's requisitions.
"We believe their interests are at odds with other shareholders and this is just the start of their disruptive action. We encourage all our shareholders to read the circular in full and protect the future of Alliance Trust by voting against Elliott's proposed resolutions."
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