Major Myer shareholder Investors Mutual has flagged the potential for a huge conflict of interest if Premier Investment’s nominee Terry McCartney joins the department store giant’s board.

Myer’s annual general meeting will take place on November 10, where Lew will attempt to former Kmart and Grace Bros MD, and current Premier Investments director McCartney onto the Myer board.

Myer however, has chosen not to recommend McCartney’s election to its shareholders.

Investors Mutual senior portfolio manager Simon Conn (pictured below) said they were numerous issues with McCartney joining the board.

“This board battle is a bit of a distraction,” he told the AFR.

“You want a united board behind a highly capable management team. There is potential for a huge conflict of interest – not sure how you redact all the relevant information about landlord negotiations, supplier terms and forward planning for next season from board meetings without having a fulsome board discussion.

“I don’t see the reason to change the board when they have hired a good management team. We are very supportive of the current management who are doing a good job in a tough environment. If Solly wants control, he should just pay a premium and buy the group.”

Oscar Oberg, lead portfolio manager for Wilson Asset Management, another significant shareholder, said “the current management team is doing a fantastic job,” while also noting the Myer shares are undervalued.

“Premier is one of the best retailers in the country, and you would assume they could add value.”