THE largest shareholder in the embattled Valad Property Group has demanded the resignation of managing director Peter Hurley following the demise of his planned management buyout of the group's European business in London.
The highly criticised deal was first proposed by Mr Hurley and the group's European chief executive, Martyn McCarthy, in December.
Simon Marais, a director at Orbis Funds, which owns 19 per cent of Valad, yesterday called for Mr Hurley to resign. ''I think those directors should all go, definitely,'' he said.
Valad recently disclosed the proposed management buyout valued the European business at a ''gross consideration of approximately ?52 million'', below its book value of ?56.5 million.
Mr Hurley has been on leave since December, but was still getting paid as he thrashed out a deal to buy the European business he helped buy for $2 billion in June 2007.
In Mr Hurley's absence, former UBS investment banker Clem Salwin was appointed acting chief executive.
Mr Salwin, who is in London, said that following the withdrawal of the management buyout, he was in talks with Mr Hurley regarding his ''future arrangements with Valad''.
The company's founder and former managing director, Barry Wynne, one of the most vocal critics of Valad's board and management team, called on Mr Hurley to resign.
''If Mr Hurley doesn't take the only obvious and honourable thing and tender his immediate resignation from the board and the employment of Valad, and forgo any claim to golden-parachute payments and benefits, then I think the board must take immediate and decisive action,'' said Mr Wynne.
Valad's annual report stipulates that Mr Hurley, who was paid a $1.88 million retention bonus last year, is entitled to a $2.3 million termination payment if his ''employment is terminated without cause in a year prior to 30 June 2011''.
Mr Wynne said the Valad board should also terminate the six senior staff of its European operations behind the buyout proposal.
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