One51 board not told about payments to company management - AGM
28 July 2010 13:12
by Geoff Daniel
One51's board was not told about payments made from a subsidiary to members of the company's management it has been revealed. A tax-free royalty payment of around €1.98m was paid to nine One51 executives from the proceeds of a patent for a paint-tin lid developed by a subsidiary company.
Speaking at One51's AGM today, non-executive director Noel Cawley said the company's board had not been told of the payments from patent income distributed to management. He also said chief executive Philip Lynch had "an old style of corporate governance".
A number of speakers, representing shareholders and former management, asked questions concerning the patent income, director remuneration and corporate governance at the company. One51's chief financial officer Alan Walsh robustly defended the company's record, frequently referring to legal advice that informed the management's decisions. When asked why the board was not told of the complex structure put in place for the payment of the patent income, Walsh said many companies employed similar structures.
Non-executive director and former Minister for Agriculture Ivan Yates said he had been troubled by some of what had been recently discovered. But he said he was "excited" about the prospects for the company, citing the 'Clear Circle' environmental services division of the company. He added that if he failed to meet his objective of increasing shareholder value he would resign.