How to get a board seat in four easy steps

Deborah Cone Hill

Friday 23rd January 2004

Last year Hanover Group threw a paddy.

It bought a chunk of insurer Tower and didn't get offered any directorship action.

This was even though rival Guinness Peat Group managed to swan into the boardroom after pulling off a controversial rights issue.

How come? Hanover, frankly, thought it seemed unfair and said so, and I couldn't help wondering too.

As Sarah-Jessica Parker might tap out on her laptop after a few Cosmopolitans: "How do you get a seat at the boardroom table?

"Is it a private party or can anyone join in?"

I asked GPG's Blake Nixon the same question and although he didn't have any instant answers he shared his advice.

* buy a stake of more than 20% and you should get a fair hearing for a board seat;

* go to the company which has problems and let it know you are supportive;

* remember if it is friendless with the institutional shareholders the only thing it is going to listen to is good news;

* and most importantly let it know you will provide more money.

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