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Marks & Spencer's embattled board defended itself this afternoon against a barrage of hostility from small shareholders over the position of chief executive Sir Stuart Rose.
Investors flocked to the company's annual general meeting to pack out the Royal Festival Hall and barrack the board.
The key point to their anger was Rose's failure to anoint successors to his positions of chief executive and chairman.
Numerous shareholder bodies have attacked the board for its tardiness in filling the positions.
However, deputy chairman Sir David Michels defended the board's actions, saying it was "eminently sensible" for Rose to stay on to ensure a seamless transition.
He reiterated the company's pledge that a new chairman would be in place by summer 2011 "at the very latest".
In the event, 37.7% of shares were voted in favour of a rebel motion to force the board to split Rose's position of chairman and chief executive by next July.
Michels repeatedly dismissed the row, saying the disagreement with investors over the succession plan "was about process rather than principle".
Of more concern to many shareholders was the company's flagging financial performance and declining share price.
Profits have slumped in the face of a recession and the dividend payment to shareholders was slashed 20%.
However, Rose attempted to rally support, defiantly insisting: "This is a business that has got its confidence back. If you don't believe the M&S of 2009 is better than M&S of 2004 I think you should look again."
Rose earned applause on several occasions, notably in response to a question about why M&S was not more like Tesco or Next.
Said Rose: "I am proud to say that we are not Tesco and that we are not Next."
Shareholder John Farmer said: "I think Sir Stuart should stand down sooner rather than later."
In an indicative vote taking in the majority of investors, Rose was re-elected to his position despite the row. Shareholders holding a total of 91% of the company voted in favour of his re-election.
However, shareholders delivered a clear message about their fury at the dual chairman/chief executive position, which is a clear breach of City guidelines, which state that a chairman should be independent of the board.
On the remuneration report, 89.6% voted in favour.
As in most boardroom spats, M&S has been carefully courting its biggest institutional investors for weeks to persuade them to give Rose breathing space.
The AGM came just a few hours after Credit Suisse analyst Tony Shiret issued a daming note to clients about M&S.
