Incoming chairman of Fortescue Metals Andrew Forrest is being hounded by issues that the board under his leadership will just be merely a rubber stamp and will not question his decisions, according to the Australian Shareholders Association.

The worries came despite analysts' predictions that shareholders will give a warm reception on Mr Forrest's power move from chief executive to chairman.

The corporate governance campaigners said stockholders of the Australian iron ore mining company might get the risk of having an "old buddy" board under his chairmanship.

''It's a long way removed from what would be considered best practice corporate governance, or what people would expect from a top 100 ASX-listed company,'' said ASA spokesman Les Goldmann in a report by the age.com.

However, there are those who believed that the power shift is a welcome move with the investors. An analyst with Pengana Capital, Tim Schroeders said Twiggy's transfer from CEO to Chairman would definitely have a nice appeal with the shareholders and the fate of Fortescue's shares.

"You can't underestimate the significance of people backing the man. He has got a certain flair and entrepreneurial spirit that people have warmed to, and they've backed him as a consequence,'' he said in an with the Sydney Morning Herald.

The analyst also said those who are fascinated by the aspirations of Mr. Forrest would see it is as a retention and continuation of the leadership at Fortescue Metals.

Mr. Forrest said that he thought of taking a break from the company's day-to-day operation before buckling down to work as chairman. However, he said that the company's suppliers and investors were hesitant to see him totally leave the company.

''They spoke strongly and much more loudly than corporate governance experts,'' he said in an interview published by the Sydney Morning Herald.

Mr. Schroeders said other stockholders are worried with the iron ore mining giant's legal combat with the Australian Securities and Investments Commission.

There are others who would also be delighted with the shift in leadership and will absolve Fortescue Metals from any damages that would result in an impending legal battle.

The Australian billionaire might be penalized and barred from holding any position in the board of director of any company if he would be found out to have deceived stockholders over his report with regards to company agreements.