Stobart battle: Judge finds former boss Andrew Tinkler breached duties as a director
The judge in the bitter court battle between the Stobart Group and former chief executive Andrew Tinkler ruled today that Tinkler had made four “serious” breaches of his duty as a director.
His Honour Judge Russen QC said Tinkler breached his contractual and fiduciary duties in four ways: by agitating for the removal of the chairman among major shareholders and criticising the board’s management; sharing the confidential budget for a wood-burning incinerator the company owned with Edinburgh Woollen Mill boss Philip Day; writing a letter to shareholders – which he also sent to all company staff – urging them to remove Ferguson; and orchestrating a letter from members of the firm’s executive leadership team and an employee petition in his support.
Read more: Star trader Neil Woodford 'shocked' by Stobart conspiracy allegations
The judge also found four directors of Stobart – Ferguson, chief executive Warren Brady, non-executive director John Coombs and non-executive director Andrew Wood – had breached their duties when they transferred 5,320,425 shares from the company’s treasury to the employee benefit trust which were then voted in support of Ferguson’s re-appointment to the board at the company’s annual general meeting.
Stobart had claimed Tinkler had launched an unlawful conspiracy to topple its board – but the judge ruled that they had not managed to establish this claim.
The judge also ruled that Stobart’s dismissal of Tinkler from the board was lawful – which he had denied.
Read more: Stobart Group appoints female director in aftermath of boardroom dispute
Tinkler said today: “In light of the judge’s findings, Mr Brady, Mr Ferguson, Mr Coombs and Mr Wood have no place on the board of Stobart Group and they should all step down without further delay.”
Ian Rosenblatt, senior partner of Stobart’s law firm Rosenblatt, said: “As today’s judgment makes clear, it is not acceptable for one dissenting director to try to destabilise the company while remaining a board member. I am pleased we were able to help Stobart secure this judgment and allow the team to get on with the successful running of the business.”