Proxy advisers Glass Lewis and ISS have recommended that Nanoco Group shareholders vote against the appointment of two directors put forward by activist investor Milkwood Fund.

The decision is a potential boost for the management of the Runcorn-based nano-material firm, which is looking to fight off the challenge from Milkwood, an activist acting on behalf of 5.6% of voting shares in the company. 

Both Glass Lewis and ISS recommended a vote against the appointment of Rhys Drennan Summerton and Andre Charles Tonkin as directors at a general meeting scheduled for 13 December.

Christopher Richards, Non-Executive Chairman of Nanoco, said: “We have been clear that the Board believe that the Resolutions are not aligned with the interests of all of the Company’s Shareholders and would be highly disruptive to the Board’s ability to execute its clear strategy to deliver value to Shareholders.”

“Given the composition of Nanoco’s shareholder register, it is critical that all shareholders vote at the upcoming general meeting in order to protect their future returns. If shareholders have any questions on how to vote their shares, particularly through nominee accounts, I would personally urge them to contact us.”

Nanoco recently appointed Dmitry Shashkov as chief executive officer and put its trading business and intellectual property up for sale after the loss of a major customer prompted a strategic review.