Taken from William Rollason and Stevan’s Fowler’s Skeleton Argument is the following:-
Mr Kelly’s email of 3 October 2006 said, “if Findel messes us around then we may end up going with the management plan. This is fairly unappetising in many respects given it doesn’t de-risk the Bank but it is probably preferable to a lengthy insolvency and workout with all the added risk this brings with it.”
Unfairpak can advise that Mr Kelly is from HBOS and was on the stand today. We have been advised that he was being given a “pounding” by the defence team on “not raising concerns of possible administration with the directors earlier”.
Unfairpak believe that the directors defence may hinge on HBOS and the possibility that they led them [directors] to believe there may have been a solvent solution.
This opening skeleton argument is filed on behalf of the 2nd, 5th, 6th and 9th Defendants (referred to collectively below as “the EHR Non-Executives”), being Mr Neil Gillis (“Mr Gillis”), Mr Michael Johns (“Mr Johns”), Mr Paul Munn (“Mr Munn”) and Sir Clive Thompson (“Sir Clive”). The Secretary of State (“SoS”) seeks Disqualification Orders against each of them under section 8 of the Company Directors’ Disqualification Act 1986 (“CDDA 1986”) on the grounds that the conduct of each of them as a director of European Home Retail PLC (“EHR”) was such as to make them unfit to be concerned in the management of a company.
Mr Gilodi-Johnson is the only son of Bob Johnson, one of the founders of Farepak. In 1993, its shares were listed on the London Stock Exchange. The listed company was Farepak plc. It subsequently changed its name to Kleeneze plc and then to the European Home Retail plc (“EHR”) in 2005. The original Farepak business at this time was carried on by a subsidiary known as Farepak Food and Gifts Ltd (“FFG”).
This skeleton argument is filed on behalf of the First Defendant (“Mr Fowler”) and the Eighth Defendant (“Mr Rollason”), both of whom were directors of both EHR AND FFG. Mr Rollason was the Chief Executive of EHR; Mr Fowler was appointed as Group Finance Director on 1 January 2006 and he actually started work on 9 January 2006 (which was after the start of the material period for the allegations).