New Board Shifts - Abc's Centre Of Gravity

The Age

Wednesday August 6, 2008

Vanda Carson

ABC Learning Centres has made wholesale changes to its board in an attempt to salvage its shattered credibility in the market.

The changes will reduce the influence of chief executive Eddy Groves over the child-care operator, with three of the company's biggest shareholders each gaining a board seat. A further two non-executive directors have been appointed to placate concerns about reporting and corporate governance standards.

The board has been meeting with just four members: newly appointed chairman David Ryan, former federal children and youth affairs minister Larry Anthony, Mr Groves and his wife Le Neve.

Yesterday Mr Ryan said the new appointees had a wide range of experience. Three of the directors, Paul Binsted, Andrew Hawkyard and Colin Au, are either current or former executives of, or advisers to, major shareholders Lazard, Morgan Stanley Private Equity and the Singaporean Government investment fund Temasek.

ABC shares rose by 2.5, or 4%, to 71. -- VANDA CARSON

© 2008 The Age

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