Shareholders in revolt over Associated British Foods director

By SIMON NEVILLE
Updated: 17:09 EST, 10 December 2010

Primark owner Associated British Foods waved through the controversial re-appointment of non-executive director William Weston - uncle of chief executive George - despite 9.1 per cent of shareholders refusing to back the plan.

Investors flexed their muscles at ABF's annual meeting, questioning whether he can be considered impartial because of his family ties.

Corporate governance presssure group PIRC said it had recommended shareholders vote against the measure, adding Weston is not independent because he is a director of ABF's holding company Wittington Investments. PIRC also took issue with him missing five of the eight board meetings held this year.

Trading update: Charles Sinclair warned higher cotton prices will impact on Primark's margins

The firm (down 14p at 1,091p) also waved through a resolution which could enable some executives to receive bonuses as high as 200 per cent of their basic pay - up from 150 per cent.

In a trading update chairman Charles Sinclair said the group, which also owns Twinings tea and Kingsmill bread, had traded in line with expectations over the past two months but warned higher cotton prices will impact on Primark's margins.

He said: 'We remain cautious over the uncertain economic outlook.'