LONDON (Alliance News) - Elektron Technology PLC Thursday said the court rejected a claim by a shareholder against two of its directors, whilst postponing review of the claim against four others.
Back in June, the company, which develops technology used for power supply and instrument control, said that Barrie Bridge, who it said owns a 1.83% stake in Elektron, had launched a "derivative claim" against six current and former directors of the company over mismanagement.
Bridge alleged various breaches of duty by the directors, including dishonesty, 'a reckless acquisition spree', illegal share price manipulation, and the implementation of unfair bonus and share schemes without proper shareholder approval.
Electron said at the time that its directors refute the allegations made by Bridge and have instructed their own solicitors and counsel.
In its statement Thursday, Elektron said the court on Wednesday rejected Bridge's claim against current non-executive independent directors Anthony Harris and Richard Piper, on the basis that Bridge had "failed to establish a case against them that they could be required to answer".
Bridge was order to pay both Harris and Piper specific costs, including GBP5,000 plus VAT in respect of the directors' costs, and GBP5,000 for the company's costs within 28 days.
Elektron noted that Bridge appointed a legal representative on September 11, less than three weeks before the hearing, while also trying to reformulate his claim.
"The wasted costs of the company and the directors in preparing for and attending yesterday's hearing be paid by Mr Bridge, to be assessed if not agreed, as the court was satisfied that Mr Bridge's late appointment of legal advisors was tactical, and his stance in seeking an adjournment disingenuous and opportunistic," Elektron said in its statement Thursday.
Elektron said that the court postponed a review against the four other directors. In the meantime, it said, proceedings will be stayed until November 30 "to enable the parties to consider alternative dispute resolution".
The company's stock was untraded Thursday morning at 5.07 pence.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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