DCC won’t face more action over share sale
DCC won’t face any more action in relation to a sale of Fyffes shares 10 years ago after a court-appointed inspector found no intentional breaches of law, the Director of Corporate Enforcement said.
The inspector tasked with the investigation, Bill Shipsey, investigated the actions of the company after a Supreme Court judgment in 2007 that DCC founder Jim Flavin possessed market-sensitive information when selling the shares. Flavin was a director of Fyffes at the time.
“The suggestion that the dealing was intentionally wrongful or that it was evidence of dishonesty on the part of Jim Flavin or of a culture of disrespect for the companies code in DCC can be dispelled,” according to the inspector’s report, published today in Dublin.
Flavin resigned in 2008 from the company he founded more than 30 years earlier after Ireland’s largest fund managers said he should step down.
DCC agreed in April 2008 to pay Fyffes and investors €41m to settle a dispute over the trades after saying Flavin made an “unwitting breach” of civil law.
“The error was a costly one for DCC and its former executive chairman and founder,” according to today’s report.
“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.”
DCC fell 14 cents, or 0.7pc, to €20.88 as of 2:35pm in Dublin trading, giving the distributor a market value of €1.73bn.