Two leading shareholder advisory firms have recommended changes to the board of Workspace Group Plc, aligning partially with the demands of the company’s largest shareholder, the activist investor Saba Capital. The American hedge fund, founded by Boaz Weinstein, has urged the landlord to pursue a managed wind-down involving the sale of all its 56 properties, a move that Workspace’s current board opposes.

In reports released ahead of Workspace’s upcoming annual meeting, Institutional Shareholder Services (ISS) and Glass Lewis advised shareholders to support certain board-related proposals put forward by Saba Capital. While both advisory groups rejected most of Saba’s recommendations—such as the removal of Duncan Owen as chairman—they agreed that some board changes are needed.

Glass Lewis specifically recommended voting against the re-election of David Stevenson and backing Richard Starr, a former board member of Palace Capital, a London-listed commercial property firm, as his replacement. The advisory firm noted that Workspace’s board would benefit from having more non-executive directors with deep industry expertise.

ISS took a stronger stance, suggesting shareholders remove both Stevenson and Nick Mackenzie, the chief executive of Greene King, in favor of two of Saba’s proposed candidates, Greg Attwood and Andrew Sim. ISS emphasized that appointing directors with the right experience could improve capital allocation decisions and enhance shareholder value.

Paul Kazarian, a partner at Saba Capital, described the recommended changes as an opportunity for Workspace to strengthen its board and unlock significant value for shareholders.

Workspace’s board, however, has defended its current composition, asserting it maintains a balance of real estate and operational experience. The company has urged shareholders to reject all of Saba’s proposals, raising concerns over the risks associated with a full portfolio sale, including potential value destruction.

Since taking over as chief executive in February, Charlie Green acknowledged that the company had underinvested in its buildings, which led to shortcomings in meeting customer expectations. Despite these challenges, Workspace management maintains that a managed sale of its entire portfolio is not in the company’s or its tenants’ best interests.

Shares in Workspace closed slightly higher, gaining 1 percent to 346.5 pence. The annual general meeting will provide shareholders the chance to weigh in on these contested governance and strategic proposals.