Page 36 - Stakis A Case Study

In February 1991 it was
announced that Sir Lewis

Robertson was to become
chairman of the Group,

replacing Sir Reo Stakis, the

founder.

Sir Lewis had earned a reputation in Scotland as an effective

`company doctor' - having been engaged with the

engineers Triplex Lloyd, the meat group Borthwicks and at

that time currently with Lilley, the builder - and the

announcement was met with relief in the stock market

where the share price rose 3 pence to 39 pence. However,
a spokesperson for the company stressed that Sir Lewis was

not selected because of his skills as a company rescuer. He

himself also said that he did not see the operation as a

rescue and said that the company was not in financial

difficulties.

Sir Lewis had made his views about the role of chairman

and boards of directors known. He said:

"Most company disasters are caused by management.

Management quality is the board's responsibility. Board
effectiveness is the chairman's responsibility. The

chairman's effectiveness should be enforced by the

shareholders, especially the institutions."