The mortgage lender’s independent non-executive chairman, Chum Darvall, has announced that he will step down from the board in 2020.
Chum Darvall, independent non-executive chairman of residential mortgage lender and multichannel distribution business Resimac, has revealed that he will step down from the board during the first quarter of 2020.
Mr Darvall made the announcement in a chairman’s address at the 2019 annual general meeting (AGM) yesterday (26 November), adding that there will be a few changes to the composition of Resimac’s board over the next few months.
“You will note I am standing for re-election today; however, I will also be stepping down from the board during the first quarter of 2020,” Mr Darvall said.
“Competing professional and personal priorities have driven this decision. I am very proud of what we have achieved over the last two and a half years.”
Mr Darvall said recruitment will begin during the next few months to identify new board members.
“Paramount to this refresh will be ensuring board diversity and attracting people to complement the existing board skill set and experience,” Mr Darvall said.
“A good mix of independent directors and directors representing our majority shareholder Somers has created a productive environment to date, with robust discussions helping to generate strong outcomes for your company.”
Commenting on Mr Darvall’s announcement, CEO Scott McWilliam told The Adviser: “I am greatly appreciative of Chum’s leadership and support over the last two and a half years, and wish him well.”
The Resimac CEO continued: “The board and management team are in a great position to execute against our strategic priorities, and are very positive about the future.
“We look forward to welcoming new board members to work with us on the next phase of the company’s growth,” he told The Adviser.
Mr Darvall was appointed deputy chairman of Homeloans in April 2017 and, in November 2017, took over the helm as chairman from Robert Scott.
In December 2018, the company changed its name to Resimac, consolidating the Homeloans and Resimac brands into a single brand.
Mr Darvall had an executive career in financial markets and banking for 30 years. He was previously the CEO of Deutsche Bank in Australia and New Zealand from 2002 to 2011. He was also the chairman of TransGrid from 2012 until its sale in late 2015. Some of Mr Darvall’s directorships include chair of Lens10 Pty Ltd and director of Port of Portland.
He is a senior fellow of the Financial Services Institute of Australia and a fellow of the Australian Institute of Company Directors. He is also a council member of Macquarie University.
The announcement of his stepping down as chairman follows the announcement that independent non-executive director Mike Jefferies would be stepping down from the board as well.
Mr Jefferies officially stepped down from the board at the conclusion of yesterday’s board meeting. Mr Jefferies had served on the board as independent director from 2014 and was appointed to the combined Resimac Group board in October 2016.
During his tenure with the group, Mr Jefferies chaired the remuneration and nominations committee and was a member of the audit committee.
The company’s constitution stipulates that one-third of the board, excluding the managing director, must retire from the office and stand for re-election at each AGM. Further, each director, excluding the managing director, must stand for re-election every three years.
In his address to the 2019 AGM, Mr Darvall also noted key results of Resimac compared with 30 June 2018, including the fact that normalised net profit after tax increased 19 per cent from the previous reporting period to $31.1 million.
Resimac’s loan book also grew, with principally funded assets under management having increased by 19 per cent to $10.2 billion.
Next steps for the group in the 2020 financial year will be centred on three key areas, including growth of market share by increasing penetration in the broker channel, focusing on specialist lending, and continued expansion of the company’s direct channel.