Stock Market News
CPP files injunction to prevent founder Ogston from voting in EGM
CPP Group has issued proceedings in the High Court against its founder and main shareholder, Hamish Ogston.
The former payment protection insurance company, originally founded in 1980 as Credit Protection Plan before it was later fined by regulators, forced to pay £73m compensation and last year rescued from the brink of collapse by investors Phoenix Asset Management, said it was seeking an interim injunction against 42% shareholder Ogston to stop him from overhauling the board at a proposed general meeting.
Schroders and Ogston, who remains the largest individual shareholder but has no management or operational control over the business, have proposed four current directors of the company - being Stephen Callaghan, chief executive Officer; Roger Canham, non-executive chairman; Shaun Astley-Stone, non-executive director; and Abhai Rajguru, non-executive director - be removed.
In their place have been proposed appointing ex British Aerospace and McLaren Group director Sir Richard Douglas Lapthorne at chairman, ex Asda and Cable & Wireless legal counsel Nick Cooper and current CWC and serial non-executive Mark Hamlin to the company's board, though CPP complained they lacked either "experience of the business" and the latter two appeared to have "no prior board-level experience of regulated financial services businesses".
In 2012 CPP was fined about £10m for mis-selling by the Financial Conduct Authority, which blamed Ogston's company for its central role in the credit card mis-selling scandal.
The FCA said unwitting customers paid up to £84 a year for credit card insurance - even though they would never need it because they were receiving free cover from their bank.
On receipt of Ogston and Schroders' requisition last month, CPP said it was "in active discussions with the FCA regarding the lifting of the voluntary variations of permission to which the regulated entities are still subject".
The former payment protection insurance company, originally founded in 1980 as Credit Protection Plan before it was later fined by regulators, forced to pay £73m compensation and last year rescued from the brink of collapse by investors Phoenix Asset Management, said it was seeking an interim injunction against 42% shareholder Ogston to stop him from overhauling the board at a proposed general meeting.
Schroders and Ogston, who remains the largest individual shareholder but has no management or operational control over the business, have proposed four current directors of the company - being Stephen Callaghan, chief executive Officer; Roger Canham, non-executive chairman; Shaun Astley-Stone, non-executive director; and Abhai Rajguru, non-executive director - be removed.
In their place have been proposed appointing ex British Aerospace and McLaren Group director Sir Richard Douglas Lapthorne at chairman, ex Asda and Cable & Wireless legal counsel Nick Cooper and current CWC and serial non-executive Mark Hamlin to the company's board, though CPP complained they lacked either "experience of the business" and the latter two appeared to have "no prior board-level experience of regulated financial services businesses".
In 2012 CPP was fined about £10m for mis-selling by the Financial Conduct Authority, which blamed Ogston's company for its central role in the credit card mis-selling scandal.
The FCA said unwitting customers paid up to £84 a year for credit card insurance - even though they would never need it because they were receiving free cover from their bank.
On receipt of Ogston and Schroders' requisition last month, CPP said it was "in active discussions with the FCA regarding the lifting of the voluntary variations of permission to which the regulated entities are still subject".
Related share prices |
---|
CPP Group (CPP) share price |
Stock News headlines are gathered from financial news sources around the web. Views and opinions on each item are from their respective authors and website. They are not opinions of LiveCharts.co.uk
Get a free widget for your website with our latest headlines.
You can now add our live prices and new headlines to your website.The news widget features quotes for Oil prices, spot Gold price and Indices plus a choice of news channel for healines.
Top Shares pages
- Share price quotes
- Share charts
- Share watch list
- Company Results Calendar
- Top Large UK Shares
- UK Market Sectors
- Stock market news
- Company news
- Share tips
- A-Z company search
More share features
POPULAR Share Prices
- Royal Mail share price
- Lloyds share price
- HSBC share price
- Barclays share price
- Prudential share price
- Santander share price
- RBS share price
- Diageo share price
- Standard Life Share Price
- BP share price
- Vodafone share price
- British Airways
- Centrica share price
- Tesco share price
- Taylor Wimpey Share Price
- National Grid
- GKP Share Price
- Marks and Spencer
- Rolls Royce
- Rio Tinto
- Morrisons Share Price
- Aviva Share Price
- ASOS Share price
- RPT Share Price
- SXX Share Price
- Easyjet Share Price
- Next Share Price
- Thomas Cook Share Price
- SSE Share Price
- IAG Share Price
- Boohoo share price
- Greene King Share Price
- Marstons share price
- NUOG share price
- UKOG share price
- SOLG share price