Payzone removes top executives

SHAREHOLDERS in electronic payments firm Payzone yesterday voted to remove chief executive John Nagle and finance director John Williamson from their positions.

The move follows a boardroom rift at the company, which was formed in 2007 by the merger of Irish firm Alphyra and British cash machine operator Cardpoint.

The EGM to oust Mr Nagle and Mr Williamson follows a botched attempt to dismiss them earlier this year by the company’s board, which is led by Bob Thian.

The pair secured a temporary High Court injunction preventing their dismissal and Payzone conceded before last month its attempt to remove them was invalid.

The dispute has forced the company to suspend its shares, which are traded on London’s Alternative Investment Market, pending a resolution to the row.

The motions to remove the men was backed by holders of more than 80% of Payzone shares.

A motion put to shareholders to remove chairman Bob Thian from the board was rejected.

The row between Mr Nagle and Mr Thian over the running of the company erupted after the merger as Payzone’s shares sank by more than a third.

The hostilities between the two were compounded by the deterioration in the relationship between Mr Nagle and Alphyra’s largest investor — venture equity house Balderton Capital — over the last year or so as it sought an exit from its investment in the company.

Balderton, with a 40% stake in the company, supported the removal of Mr Nagle and Mr Williamson.

Speaking after yesterday’s EGM, Mr Nagle said he was pressing ahead legal with proceedings against the remaining directors to make them personally liable for damages to his reputation.

Mr Nagle, who owns just more than 10% of Payzone, said he was “very disappointed” to be leaving having founded Alphyra 20 years ago.

Asked if he intended to remain a shareholder in the long-term, he said: “I don’t know to be honest.”

As part of the company’s listing on AIM he agreed to a lock-in of a year before selling off any of his shares.

The shares will not restart trading until the company issues a trading update.

Payzone is also due to appointed a chief executive and chief financial officer soon.