Disagreements between Midland enclosures and fasteners maker Widney and major shareholder SEP surfaced again last week with demands for an extraordinary general meeting.
SEP chief executive Paul Formby said Widney chairman David Cassidy and managing director Paul Lines had ‘gone back on their word’ by breaking an agreement to sell three underperforming businesses and return capital to shareholders.
That agreement came last January after SEP threatened to call an egm and have the directors removed, claiming that they were incapable of turning Widney around.
Formby claimed nothing had happened since then and said he was ‘outraged’ by the two men’s demands at last month’s agm for £800,000 the equivalent of three years’ pay in settlement of their rolling contracts.
Cassidy said: ‘When Paul Lines and I joined the company in 1990 we put in £600,000 of our own money. The three-year rolling contracts were stipulated as the price of our coming in. If we hadn’t come in the company would have gone bust. It has since been brought back to profitability.’