The board of directors of Fletcher Building has "no choice but to seek a new mandate" at the company's October annual meeting after last week's firing of chief executive Mark Adamson and after a second major profit downgrade this year, the New Zealand Shareholders Association says.

“Right until last week, the Fletcher board was uncommunicative to the broader shareholder base and kept faith with Mr Adamson’s abilities,” said the association’s chief executive Michael Midgley. “The recent disclosures are clear evidence that governance was not as robust as it should have been.” A series of events suggested…