Battle of the boardroom at CPP with legal action on the cards
THE board at troubled insurance and assistance business CPP is reportedly considering legal action against its founder.
The York-based business got back in the black earlier this year, when the business posted a £21.9m profit for the year to 31 December 2015, compared to a loss the year before of £4.93m.
However, The Telegraph has reported that a high-level disagreement between multi-millionaire founder Hamish Ogston and four of CPP’s directors has seen Mr Ogston attempt to oust them from the board, and replace them with three executives of his own chosing.
A shareholders circular said that his attempts to get rid of the directors oppose an agreement that Mr Ogston entered into, promising he would not undertake actions that would damage the company in any way.
Mr Ogston has a 42% stake in the business, having listed to business on the London Stock Exchange in 2010. He stepped down in 2013 following a £10.5m fine by the Financial Conduct Authority. The business also had to pay compensation of £65.8m to customers over mis-selling allegations.
A general shareholder meeting to vote on the proposals has been scheduled for May 4.
The Telegraph said Mr OGston is likely to win, with the backing of fund manager Shroders if it reaches that. The rebel investors own enough shares to force through the changes.
During the year, the company invested in a new executive team, with Stephen Callaghan appointed as CEO and Michael Corcoran as CFO, with chairman Roger Canham taking over in July 2015.
CPP Group also got rid of its airport services business, Airport Angel during the year.
More than 200 CPP staff have signed a petition to keep the current board in place.
