Business
Corporate Governance - The Fy
Corporate Governance - The Fy.
About this update from Dcc Plc
[{"type":"text","content":"\n RNS Number : 8001U DCC PLC 20 May 2008 \n \n\n\n\n20 May 2008\n\nCorporate Governance - The Fyffes Case\n\nThe Board of DCC has kept under continuous scrutiny the Fyffes plc litigation, which was launched in January 2002, and has carefully considered whether any corporate governance issues arose. The Directors have decided to address the matter comprehensively in a statement to be included in the Corporate Governance section of the Annual Report to be issued to shareholders in June 2008. It sets out the factors which they have taken into account in their corporate governance deliberations. \n\nThere has been substantial media coverage of the case. The true import of the High Court and Supreme Court judgments has not always been accurately reflected. Accordingly, the Directors have also decided to issue the statement by way of Stock Exchange announcement today, in advance of its publication in the Annual Report. The Directors hope that shareholders, on reading the statement set out hereunder, will have a better and more informed understanding of the Board's position on the matter.\n\nTHE FYFFES CASE\n\nDCC Board Review, Action and Oversight\n\nOver the past number of years, the Board of DCC has kept under continuous scrutiny the litigation which was launched in January 2002 by Fyffes plc against DCC, two of its subsidiaries and Jim Flavin under Part V of the Irish Companies Act, 1990 seeking an account of the profit arising on the sale of 31,169,493 shares in Fyffes in February 2000 by a subsidiary of DCC. \n\nFyffes claimed that certain Fyffes trading reports which had been sent to Fyffes directors including Jim Flavin, who was a non-executive director of Fyffes at the time, were price sensitive. In a judgment delivered in December 2005 the High Court concluded that the information in the trading reports was not price sensitive, that the involvement in the share sales of Jim Flavin as Chief Executive of DCC constituted a dealing by him under Part V of the Companies Act, 1990 and that he had not made use of that information which the Court found 'simply had no bearing on the Share Sales'. Only one finding of the High Court was appealed by Fyffes, namely its decis...