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ABC Learning Centres says recruiting five new directors will help improve accountability at the battling childcare group.
The non-executive directors, including two with current links to key shareholders, were added yesterday following criticism of board oversight.
"We can populate our committees with multiple people who have skill sets in different areas," ABC chairman David Ryan said. "The market is looking for us to be much more accountable and for the board to be much more active in guiding and assisting the management team."
The five were described in the market as high-quality candidates. They are: ex-investment banker Paul Binsted, ex-Deloitte Victoria managing partner Frank Ford, property executive Patrice Derrington, Morgan Stanley Private Equity Asia executive Andrew Hawkyard and Temasek adviser Colin Au.
Shares in ABC, which runs almost 1100 Australian centres, rose 2.5 to 71 yesterday.
ABC shares have tumbled from December 2006 highs on issues including concern about disclosure and debts, profit slumps and hedge fund short selling.
Last week, ABC revealed previous accounts included wrongly booked income and 2008's pre-tax loss would top $400 million.
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Two of the new board, Mr Hawkyard and Mr Au, have direct ties to shareholders Temasek and Morgan Stanley.
Mr Binsted formerly was with Lazard, which has a separately run funds management arm with an ABC stake.
Mr Ryan said the appointments had not resulted from any shareholders requesting a representative on ABC's board.
"In trying to restructure the board, I reached out to a lot of people," Mr Ryan said.
This included seeking advice from investors and accounting firms.
Mr Ryan's own appointment as chairman has also come under fire as he was a director during ABC's turmoil.
But he said large shareholders had asked him to take the role and he would remain while investors supported him.
- reprinted from The Courier Mail