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'Dennis demotion categorically untrue'

Saturday 27-April-2013 10:34

Chairman Ron Dennis has denied rumours that he has been demoted to a non-executive position with no voting power.

Earlier this week, Germany's Auto Motor und Sport claimed that the former McLaren team boss would no longer have voting rights at the Woking company and although remain on the board in a non-executive position.

The report claimed that the 68-year-old's demotion was based on the sports car arm of McLaren Automotive, which Dennis is in charge of, losing 'hundreds of millions of pounds' on the back of poor sales.

A McLaren spokesman has denied the report, insisting that Dennis is still chairman of the McLaren Group and that the company is "on track to return a profit this year".

Meanwhile, Dennis told the BBC that the story is "categorically untrue.

"A little over three years ago I signed a five-year contract with the company against the background that both then and now I am the joint second largest shareholder in the group with 25% - and I own 15% of automotive.

"My position for the first three years of my contract was executive chairman.

"At my request - I drafted the contract and agreed terms - my role went from executive chairman to non-executive chairman in January 2013.

"The difference in the job is I don't have accountability for the actions of the management. I am the chairman of both of the boards - it gives me formal obligations - and a significant shareholder."

The Brit, though, did concede that at times there had been "rare" disagreements amongst those on the board.

However, he added that "in boards throughout the world there are always things that are discussed. Some people agree, some people don't.

"There has absolutely been no suggestion of my role in the company changing beyond the change of roles that took place as per my contract in January."

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