Investment group to meet DCC director

The Irish Association of Investment Managers (IAIM) will today meet Michael Buckley, DCC's senior independent director, to discuss the Supreme Court ruling against the firm's executive chairman Jim Flavin.

There was no public comment from the IAIM on the ruling after the body's market instruments committee met yesterday to consider its implications.

It is very likely, however, that the body will ask Mr Buckley to explain the reasons for the board's support for Mr Flavin, who had insider information when selling DCC's stake in Fyffes in 2000.

The board has stated that it remains "strongly of the view" that the continuation of Mr Flavin as executive chairman is in shareholders' best interests.

The company made a profit of €85 million on the transactions, six weeks before a profit warning which resulted in a 25 per cent drop in Fyffes' share price.

DCC is facing an action for damages from Fyffes and from Eagle Star, a purchaser of the Fyffes shares from DCC which has indicated that it will be seeking damages.

Three other purchasers - Hibernian and US institutions Putnam Asset Management and Founders Asset Management - initiated legal claims against DCC five years ago, but they have not said whether they will seek damages from the firm in light of the Supreme Court ruling.

Minister for Enterprise Micheál Martin declined yesterday to comment on the case, stating it would be inappropriate to do so as the matter will go to the High Court for consideration in due course.

However, Mr Martin said he was aware that the Director of Corporate Enforcement was studying the judgment.

While certain IAIM members are said to have serious concern about the Supreme Court ruling, the organisation has no statutory power in its scrutiny of governance issues in listed companies.

The membership of the organisation includes big internationally-owned institutions and the largest Irish financial groups.

The IAIM typically does not comment in public about its dealings with particular companies, so there is little expectation of any statement today.

DCC declined yesterday to comment on its engagement with IAIM. The firm sent a letter to the body on Monday in which it outlined the reasons for its support for the executive chairman.