DCC said it will not comment on a call for firm's executive chairman Jim Flavin to step down until it has had time to consider the recommendation from the Irish Association of Investment Managers.
A spokesman for the company said this morning the IAIM statement had been noted by but until it has been fully considered by the board of DCC there would be no further comment.
Last night the IAIM said it disagreed with the stance of the DCC board to support Mr Flavin in continuing in his role as chairman following a Supreme Court ruling that he had engaged in illegal insider dealing.
The Supreme Court ruled that Mr Flavin held insider information about Fyffes when selling the shares for a profit of €85 million. Not long afterwards Fyffes issued a profit warning.
The IAIM membership includes the investment arms of AIB, Bank of Ireland, Irish Life Permanent and Anglo Irish Bank, and insurers Hibernian and Eagle Star.
"Having regard to all of the governance issues raised by this matter, the IAIM does not consider it appropriate for Mr Flavin to continue as executive chairman of DCC," the body said in a statement last night.
On Monday, at the publication of DCC's results, Mr Flavin insisted he would not be standing down before his planned retirement in July 2010.
This was followed on Tuesday by a statement from the DCC board which reiterated for a fourth time its support for Mr Flavin. The DCC board said the Fyffes such transactions "did not involve any intentional wrongdoing" by Mr Flavin and that they were "in essence" an unwitting breach of civil law.
This is the first time the IAIM has publicly called for the removal of the highest-ranking executive from a listed company
Statement from IAIM
The governance implications arising from the litigation between DCC plc and Fyffes plc has been the subject of continuous monitoring and assessment by the Irish Association of Investment Managers (IAIM).
The litigation was finally concluded in recent weeks.
The conduct expected of Institutional Shareholders in respect of investee companies is set out in the Combined Code on Corporate Governance and in the related Statement of Principles published by the Institutional Shareholders Committee (see below).
The IAIM has been conscious at all times of these obligations including the correct process for engagement with the company and guidance on the appropriateness of any public statements.
Following the conclusion of the litigation, the IAIM discussed the matter again in detail and communicated its views to the Board of DCC.
The statement made by the company in recent days has also been reviewed. Having regard to all of the governance issues raised by this matter, the IAIM does not consider it appropriate for Mr Flavin to continue as executive chairman of DCC.