‘DCC had high corporate standards and did not breach company law’

DCC did not breach company law or indulge in insider trading when it sold its stake in fruit importer, Fyffes, 10 years ago, the long-running independent investigation into the matter has found.

On the request of the Office of the Director of Corporate Enforcement (ODCE), the High Court appointed an inspector, Bill Shipsey, to investigate the behaviour of DCC in selling, for €106m, its stake in Fyffes in July of 2008.

The findings of that probe – published in a 970-page report, yesterday – stated that no further action, over allegations of insider trading on DCC’s part, will be taken by the ODCE.

The most damaging thing Mr Shipsey’s report said regarding DCC and its then chief, Jim Flavin, was that they were guilty of nothing more than an “error of judgment”.

The High Court inspector’s report stated DCC and its associate companies involved in the share selling – “had good and effective corporate governance procedures and controls at board level”, “took their corporate responsibilities very seriously” and “the directors, officers and employees – from the then chief executive down, placed a high value on legal and regulatory compliance”.

In his commentary, Mr Shipsey said a clearing of DCC’s name should be seen as something of a shot in the arm at a time when ‘Ireland Inc’ “is taking a beating internationally from a perception of low standards in high corporate places”.

“The good news from the perspective of the director (the ODCE) and corporate compliance in Ireland, is that the court, the public and the market can be reassured and take comfort from the fact that one of Ireland’s largest listed public companies had a well-developed culture of compliance, maintained high corporate standards and was a good corporate citizen, notwithstanding the costly error of appreciation by its then chief executive,” he added.

The Director of Corporate Enforcement, Paul Appleby, said he was satisfied with the report’s findings, adding: “Having considered its content in recent weeks, I do not believe that any further action is warranted by our Office under the Companies Act.”

He rounded on early criticism yesterday, by adding: “Any decision that’s been made has been made on the facts.”