A report into DCC and transactions linked to insider dealing in Fyffes shares has found that any breaches of company law which occurred "were not made intentionally".
The Director of Corporate Enforcement Paul Appleby said today his office does not propose to take any proceedings arising from the report of the court-appointed inspector who investigated unlawful insider dealing by DCC and its former chief executive Jim Flavin in the €106 million sale of the DCC stake in Fyffes 10 years ago.
The report was carried out in the wake of a 2007 Supreme Court finding of insider dealing, as a result of which DCC has paid Fyffes more than €37 million in damages.
"I am satisfied that the report achieves the public interest purpose which led me to seek the inspector's appointment in the first place," he said in a statement.
"Having considered its content in recent weeks, I do not believe that any further action is warranted by our office under the Companies Acts."
The inspector tasked with the investigation, Bill Shipsey, said there was a "costly error in the judgment" by then chief executive of DCC Jim Flavin "as to the quality of the confidential Fyffes information he had in his possession".
He concluded the actions and behaviour of DCC and its subsidiaries, S & L Investments and Lotus Green, between 1995 and 2000 in connection with the transactions "measured up to the standards required by law notwithstanding Mr Flavin’s error of judgment”.
"It was costly for DCC in terms of the money it was required to pay to Fyffes, but it was, arguably, more costly in terms of the reputational damage to both DCC and Jim Flavin," Mr Shipsey's report said.
"No finding of mine can repair the reputational damage inflicted in this matter. At least, however, the suggestion that the dealing was intentionally wrongful, or that it was evidence of dishonesty on the part of Jim Flavin and a culture of disrespect for the companies code in DCC can be dispelled."
Mr Shipsey said the concerns of director Paul Appleby following the Supreme Court finding were "largely unfounded" and said the companies involved took corporate responsibilities "very seriously".
In a statement to the Irish Stock Exchange (ISE), DCC welcomed the findings of the report, which Mr Justice Peter Kelly this morning directed should be published immediately and in full, saying it was in the public interest.
Speaking in court this morning, he also noted there was no opposition by any party to publication in full.
The costs of Mr Shipsey's investigation will dealt with at a later stage, he added.
Michael Cush SC, for DCC and its subsidiaries S & L Investments and Lotus Green Ltd, said his clients had read the report and urged immediate publication. DCC also welcomed the ODCE's statement that no proceedings would be taken arising from the report's contents, he added.
Paul Anthony McDermott, for the ODCE, said his client had asked the ISE for its view on publication and the exchange had favoured publication sometime before 6.30am tomorrow, before the stock markets open. However, the Director was in the court's hands as far as publication was concerned.
Instead, Mr Cush urged that the report be published immediately, saying public companies are used to information becoming available at all times of the day.
After considering the submissions, Mr Justice Kelly said no rationale had been outlined for the view of the ISE and he was directing the report be published immediately via the distribution of some 94 memory sticks to members of the media. He also directed the report be published on the ODCE website.
The report was presented to the court on December 21st last and has been distributed, by court order and with confidentiality restrictions lifted today, to the DCE, the Tánaiste and Minister for Enterprise, Trade & Employment, Mary Coughlan, the DCC companies and Mr Flavin.
The appointment of the inspector to DCC and subsidiaries S&L Investments Ltd and Lotus Green was sought by Mr Appleby, following the 2007 Supreme Court finding of unlawful insider dealing by DCC and Mr Flavin in the Fyffes share sale.
In July 2008, Mr Justice Kelly appointed Mr Shipsey as inspector after he found circumstances suggesting unlawfulness in the conduct of DCC's affairs relating to the 1995 transfer of the DCC stake in Fyffes and/or the sale of that Fyffes stake. A "thorough investigation" was in the public interest, the judge said.