In a new twist to the long running saga, DCC founder Jim Flavin has resigned as its executive chairman following a move by the official enforcer of corporate law, Paul Appleby, who wants the Irish High Court to appoint inspectors to investigate how DCC sold a major stake in fruit importer Fyffes in 2000.
Flavin was found by the Supreme Court last summer to have engaged in illegal share dealing when selling Fyffes shares on behalf of DCC, a holding company with interests in energy, healthcare and distribution. DCC profited to the tune of €85 million on those deals, and settled a long-running court action brought by Fyffes at a cost of €41m, plus costs and fees, last month.
Flavin's departure was announced hours after Appleby made an ex parte application to the High Court to have inspectors appointed to DCC and its subsidiaries, Lotus Green and S&L Investments.
With the backing of the entire DCC board, Flavin had said only last week that he planned to remain in office until his scheduled retirement in mid-2010. However, last Thursday the Irish Association of Investment Managers said it was "inappropriate" for him to remain in office.
The company called an emergency board meeting on Monday and has released a statement. It said: "Mr Flavin told the board 'While I am resigning, I firmly hold the view that I have always acted honourably and in what I believe to be the best interests of the company and all its shareholders'."
DCC is taking legal advice and said DCC said Flavin’s decision was made, "due to the continuing uncertainty arising from the outcome of the litigation" with Fyffes.
DCC managing director Tommy Breen was appointed chief executive with immediate effect.
