Andrew Tinkler was ousted as chief executive in June, but has put himself forward to be re-elected to the board at the annual general meeting (AGM).
Tinkler was shown the door after he told shareholders and employees that he would be using his shares to vote against the re-election of Iain Ferguson as chairman and install Peter Day. He has also been accused of inappropriate behaviour.
The board recommended shareholders vote against Tinkler’s proposal in a regulatory filing published on Monday afternoon.
Woodford has sided with Tinkler, describing him as an “honourable” man, whereas Invesco has sided with the board.
The split has surprised many in the industry, who point the fact the star fund manager and his former colleague Mark Barnett have many, very large overlapping holdings.
“It’s evidence of autonomy rather than collaboration,” said Chelsea Financial Services managing director Darius McDermott, who welcomed the “genteel difference of opinion”.
McDermott said it appeared to be the first time the pair had taken differing sides over a company.
Invesco owns 25.3% of Stobart, while Woodford owns 19.9%.
Public spat
Woodford likes to work very closely with the management teams on his positions so will be very well aware of what is going on, said AJ Bell head of active portfolios Ryan Hughes.
“When it comes down to these types of high level board room issues, it is the fund managers themselves that get involved as they are the ones that know the management teams. On that basis, it doesn’t really make too much difference that Invesco are bigger than Woodford,” Hughes said.
It was difficult to say whether this was the first time Woodford and Barnett had ended up on opposite sides of a shareholder vote, he said.
“Often these kind of things get resolved behind closed doors and you never really hear about it. To have this played out so publicly is never the optimum solution.”
On the plus side, Hughes said it was good to see fund managers actively engaging with management, stating they are often seen as “silent investors”.
M&G Investments and Miton are the remaining asset managers with significant shareholdings.
Our sister publication Portfolio Adviser understands M&G is trying to establish a truce in the situation by proposing Allan Leighton as an interim chairman.
The AGM takes place on 6 July.
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