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The English court dismisses Dimas Gimeno and appoints new president to Nuño de la Rosa

The counselors have appointed Jesús Nuño de la Rosa as new president, so far chief Executive Officer

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The English court dismisses Dimas Gimeno and appoints new president to Nuño de la Rosa

The Board of directors of El Corte Ingles has approved dismissal of Dimas Gimeno as president of company on Thursday. Gimeno has been confronted with his cousins, Álvarez sisters, counsellors and owners of a majority shareholding, for control of society. The so far President (took reins in 2014 when his uncle Isidoro Alvarez died) has lost his pulse and Council has decided to appoint today in his post to Jesus Nuño de la Rosa, until now CEO. "The company's governing body has considered it necessary to change leadership in order to face challenges of future and to promote a new stage of growth," company says in an official statement.

Jesús Nuño de la Rosa, appointed president by Council of English Court

The Alvarez sisters departed in this council with advantage, because y had almost insured vote of seven of 10 advisers. He has finally achieved eight supports: his own two vows; Those of well and Nuño of Rose; The historical ones Florencio saga and Carlos Martínez Echevarría; Paloma García (Portfolio Mancor) and independent Manuel Pizarro. Sheikh Riyal Al Thani's representative has abstained. Dimas Gimeno did not go to Council. Then, at time of voting appointment of Jesus Nuño de la Rosa, nine directors present have supported decision.

Dimas Gimeno says he's going to challenge meeting. On agenda of meeting, convened last Tuesday by Secretary of Council, Antonio Hernández-Gil, it is only approval of minutes of previous meeting, cessation of Gimeno and appointment of his replacement. And as sources close to family conflict pointed out, chosen one has been so far CEO.

More information
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Jesús Nuño de la Rosa (Madrid, 1963) has been candidate backed by Álvarez sisters for months. It floated possibility that it was Marta Álvarez who took office, but both she and her sister preferred to opt for professionalization of post, but suppose that, for first time, president of English court is going to be someone outside family Founder. In same way, Dimas Jimeno is first president to be displaced from his post, as previous presidents held office until y died.

Dimas to challenge Council

The English court notes in his official statement that De la Rosa has extensive experience in world of business and finance, "which will allow him to face new challenges of group." He has developed most of his professional career in Viajes El Corte Ingles, a company he was Director general from 1998 to October 2017 when he was appointed CEO of group, a position he had so far shared with Víctor del Pozo.

Gimeno did not want council to be held this Thursday. In fact, as president convened on Tuesday anor board of directors for 12th of July, whose celebration is in air, waiting for Gimeno contested affectively meeting today and that it has legal path. In any case, on agenda of his call for July, he treated, in addition to his dismissal, anor series of points that he considers transcendent for company as audit of Department of Security and exit to stock exchange. The irregularities detected in security and its control have been anor key point in tension experienced in Council in last two months.

In particular, item two on agenda includes request for "a legal report on compliance with requirements for convening of governing body, legal consequences and need to adapt company to standards of good Government. " In three it asks "an agreement on Constitution of mandatory appointments and Remunerations Committee in accordance with provisions of article 47 of Social statutes". It is point five in which it raises an "analysis of actions carried out and to carry out in relation to allegations on irregular practices in different areas of business of company" and position of Council "based on its idelegables competences on Company's strategy for next few years and, especially with possible exit to stock market. "

Before war of calls for advice was unleashed, Gimeno met with Nuño de la Rosa to try to bring positions, without success. Thereupon, Secretary of Council, Antonio Hernández-Gil, launched call. In this situation, attorneys of Gimeno have considered that it was necessary for him to exercise his authority and convene anor council.

Four years of President

Gimeno was appointed president in September 2014 after death of his uncle Isidoro Alvarez, far of sisters Álvarez Guil, who in turn entered board of directors and board of Fundación Ramón Areces, main shareholder of group. Gimeno had been chosen to hold office for years, in which he played various roles and reached director general and entered board of directors.

During first three years of its mandate differences between president and two premiums did not manifest explicitly. Until October 2017, majority of Council decided to remove executive functions and appoint two CEOs. At that moment conflict broke out, in which old guard of company executives stood on side of sisters.

Meanwhile, appeared two anonymous sent to Gimeno and saga in which he told a series of allegedly fraudulent actions of Department of Segurdidad of great stores that he put on table and on which was commissioned an audit to EY. The results of this audit, which could involve company's previous managers, are not yet known.


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