The Lemon Fool

An article in The Times today says that Aberdeen Standard Investments is taking legal advice as to whether it can sue Jeff Fairbairn and other directors in connection with the CEO's refusal to back down from taking his £75m bonus on the grounds that it has damaged the company's reputation (Section 172 of 2006 Companies Act legislation). Good luck with winning that one. If the company gets stuck with the legal bill, it could make a bit of a dent in the profits. I haven't heard of any other similar actions but maybe that's because in cases where it might have applied to directors there was no company left to have a reputation! PSN has been one of my best investments to date; long may it continue.

A bit early to worry about this - there isn't an action yet! It might well be that the legal advice is "No, you can't", in which case we'll probably hear no more of the matter - and equally, it might well be that the reason you haven't heard of other similar actions is that others who have considered such actions have received such legal advice and dropped the idea, without letting journalists get wind of the fact that they were considering it...

Gengulphus

Gengulphus wrote:A bit early to worry about this - there isn't an action yet! It might well be that the legal advice is "No, you can't", in which case we'll probably hear no more of the matter - and equally, it might well be that the reason you haven't heard of other similar actions is that others who have considered such actions have received such legal advice and dropped the idea, without letting journalists get wind of the fact that they were considering it...

Gengulphus

I quite agree, which is why I said "good luck with winning that one". Am not worried; only mentioned it as there wasn't much on the board this morning.

Not having anything to discuss about their shares is HYPers' heaven! ;-)

Gengulphus