Investors express concern about Mike Lynch’s influence at Darktrace
Investors in cybersecurity firm Darktrace have expressed their disapproval of the company’s affiliation with scandal-stricken British entrepreneur Mike Lynch by rejecting the appointment of his representative to the company’s board.
At the company’s annual meeting, 56.67 per cent of shareholders voted against the election of Patrick Jacob as a non-executive director, representing the interests of Lynch, who is currently embroiled in a US fraud trial.
One institutional investor wrote to the company: “Mike Lynch’s trial in the US creates unhelpful headline risk for Darktrace which we view as unwarranted, so any move to distance Darktrace from these headlines is a positive in our eyes.
“Additionally, we do not believe granting a board seat to Invoke is conducive to helping Darktrace develop and mature as a global business and investment.”
Lynch faces charges related to the $11bn (£8.7bn) sale of Autonomy to Hewlett-Packard. He has denied any wrongdoing.
Invoke Capital, Lynch’s investment vehicle that seeded Darktrace, brought former Autonomy staff, including chief executive Poppy Gustafsson and chief of technology Jack Stockdale, into Darktrace’s fold.
Gustafsson has been trying to distance herself from Lynch of late. She recently refused to go to the US to give testimony in Lynch’s criminal trial.
Seeking to sever perceived links between the alleged fraud and Darktrace, the company appointed two independent non-executive directors this month.
The London-listed company’s shares are up over 14 per cent over the past year.
City PM has reached out to Darktrace for comment.