THE boardroom battle at CPP has moved to the High Court after the stock market-listed company issued proceedings against its founder, Hamish Ogston.
Mr Ogston, who holds a 42% stake in the York business, has launched an attempt to seize control of the board. He is supporting resolutions by Schroders, which owns 10%, to replace directors of the business.
However the directors responded on Friday with a circular to shareholders which said 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.
Today CPP has sought an interim injunction against Mr Ogston to prevent him from exercising voting rights in support of the resolutions put forward by Schroders at a meeting on May 4 – to replace the directors – and block him at an annual general meeting from preventing or obstructing the re-appointment of existing board members.
The York-based business has had a turbulent few years but got back in the black earlier last year, when the business posted a £21.9m profit for 2015, compared to a loss the year before of £4.93m.
Last month, its chief executive said the results mark a “new beginning” for the business, which has faced several years of reputational and financial damage.
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.
Mr Canham said that he wants to continue to develop an “appropriate culture” at the business, following a challenging period.
It was fined £10.5m by the Financial Conduct Authority in 2012 and paid out £65.8m in compensation to customers for mis-selling.
Last year the group closed two UK offices and four overseas offices, removed its chief executive, found £20m of cost savings and raised £20m in equity funding.
See also:
