The board of DCC has defended its decision to continue backing its executive chairman Jim Flavin following the outcome of the case taken against the company by fruit company Fyffes.
In July last year, the Supreme Court found that DCC and Mr Flavin had inside information on Fyffes when it sold its stake in the fruit and vegetable distributor for €106m in early 2000. The court overturned a High Court decision that it did not.
In its statement today, the DCC board set out its reasons for supporting Mr Flavin, citing the earlier High Court finding that the share dealings in February 2000 did not involve 'the use or exploitation' by Mr Flavin of the price sensitive information related to Fyffes' trading position which was at the centre of the case. It said this finding was not overturned by the Supreme Court.
'The Fyffes case was a civil action and did not involve any allegation or finding of dishonesty, fraud or crime,' said the board.
It added that it was satisfied that the facts surrounding the sales of Fyffes shares 'fully support its view that the share sales did not involve any intentional wrongdoing on the part of Jim Flavin'.
The board said it had taken its decision to back Mr Flavin after a 'full discussion' and with legal advice, and had explained this to the company's larger shareholders.
Yesterday, DCC's annual results included the €50m cost of settling the case. This included a payment of €41m to Fyffes and the counterparties in the case.
