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Economy

Payzone concedes to court decision

Thursday, 07 February 2008

Payment system operator Payzone has conceded to the Irish High Court’s decision to halt the sacking of CEO John Nagle and chief financial officer John Williamson.

Payzone is the largest branded independent network of retailer payment outlets in the UK with a network of over 30,000 locations. The company's network enables people to pay their rent and energy bills electronically in shops.

The ATM firm is the result of a merger last year between the Irish payment firm alphyra Holdings Limited and the British firm Cardpoint.

Nagle and Williamson both joined the firm from alphyra, while the rest of the board consists of former Cardpoint managers.

Chairman Bob Thian issued a surprise statement in December announcing the departure of John Nagle, the firm’s CEO, and John Williamson, its chief financial officer.

The chairman was allegedly angry over a letter written by Nagle, one of Ireland’s best-known businessmen, in which he criticised Thian's activities.

Thian in turn accused Williamson of misconduct over an alleged failure to provide financial information.

Last week the High Court of Ireland granted Nagle and Williamson an interlocutory injunction, after the two executives successfully claimed that the firm had not followed fair and proper procedure.

The injunction prevents the company from treating them as being dismissed.

The company said in a statement that it accepts the Court’s verdict that the letters dated 15 January, in which Nagle and Williamson were sacked, are of no effect.

Payzone will now pay the costs of Nagle and Williamson in respect of the legal proceedings to date.

Nagle and Williamson are proceeding with a claim for damages against the company which is expected to be determined by the Court in due course.

At the request of its shareholders Payzone (LSE:PAYZ) is convening an extraordinary general meeting (EGM) on Monday 10 March 2008 in Dublin.

Three separate resolutions will be considered by the EGM, one for the removal of each of Nagle as chief executive officer, Williamson as chief financial officer and Thian as chairman.