(Alliance News) - Engineering firm Velocity Composites PLC said Tuesday it has entered into relationship and settlement agreements with the company's founder shareholders.
In 2019, a tussle between the board and the founder shareholders - Jonathan Bridges, Christopher Banks and Gerard Johnson - resulted in former executive chair Mark Mills standing down and Bridges - the firm's one-time boss - becoming interim chief executive.
The founder shareholders in aggregate hold about 43% of the company's shares. The stock closed 0.9% lower in London at 35.15 pence a share on Tuesday.
The relationship agreement ensures that Velocity is capable at all times of carrying on its business independently and that future transactions between the company and any of the founder shareholders are on an "arm's length basis" and on "normal" commercial terms.
This agreement will be terminated immediately if each of the founder shareholders interest in Velocity will fall below 15% or in aggregate the interest of the founder shareholders will be reduced below 25%.
Turning to settlement deal, Velocity said Johnson will secure a termination payment of GBP67,000, including related legal costs, and Banks will receive a termination payment of GBP32,000.
Bridges, who was reappointed as a director of the company in July 2019, has not requested, and will not receive, any compensation for relinquishing his position as CEO in 2018, Velocity noted.
By Loreta Juodagalvyte and Evelina Grecenko; loretajuodagalvyte@alliancenews.com and evelinagrecenko@alliancenews.com
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Velocity Comp (VEL)