The Four Courts, Dublin.

DCC founder Jim Flavin resigned as its executive chairman on Tuesday evening, following a move by the Director of Corporate Enforcement Paul Appleby to get the High Court to appoint inspectors to investigate how it sold a stake in fruit importer Fyffes in 2000.

In 2007, the Supreme Court found that Flavin had engaged in illegal share dealing when selling Fyffes shares on behalf of DCC, a conglomerate that was founded in 1976 and has businesses in healthcare and distribution. DCC had made a profit of €85 million on the share deals, which were transacted via a DCC associate company, Lotus Green, in the Netherlands, for tax purposes. DCC settled the court action brought by Fyffes at a cost of €41 million last month and with legal and related fees, the total cost was €50 million.

Flavin's sudden resignation was announced after Paul Appleby made an ex parte application to the High Court to have inspectors appointed to DCC and its subsidiaries, Lotus Green and S&L Investments.

Flavin had the support of the board to remain in his position until 2010. Last week, the board issued a lawyer produced selective parsing of the High Court and Supreme Court judgments, on the insider trading case, with the conclusion that there had only been an unwitting breach of a civil law that has since been repealed. However, the die was cast last Thursday when the the Irish Association of Investment Managers said that it was "inappropriate" for Flavin to remain in office.

Former AIB Chief Executiive Michael Buckley, has been appointed chairman.

DCC Statement on Jim Flavin's Resignation:

The Board of DCC plc announces that its Executive Chairman, Mr Jim Flavin, has resigned with immediate effect. Mr Flavin informed the Board today that, due to the continuing uncertainty arising from the outcome of the litigation with Fyffes plc, it was in the interests of the Company and its shareholders for him to resign as Executive Chairman and a director of DCC plc.

Mr. Flavin told the Board “While I am resigning, I firmly hold the view that I have always acted honourably and in what I believe to be the best interests of the Company and all its shareholders”.

The Board has appointed Mr Michael Buckley as non-executive Chairman with immediate effect. Mr Buckley joined the Board in September 2005, since when he has been Senior Independent Director. Mr Tommy Breen, who was appointed Group Managing Director on 1 July 2007, has been appointed Chief Executive with immediate effect.

Mr Michael Buckley said “Jim Flavin has been the driving force within DCC plc, having founded the Company in 1976, and has developed it into one of the most successful companies in Ireland”.

The Board of DCC plc is focused on continuing the development of DCC in the interests of its shareholders.

DCC Statement on High Court application by the Irish Director of Corporate Enforcement:

DCC plc has been informed by the Irish Director of Corporate Enforcement (“DCE”) that he intends to make an application to the Irish High Court for:

1. An Order pursuant to Section 8(1) of the Irish Companies Act, 1990 and Order 75B, Rule 3(b) of the Rules of the Superior Courts 1986 appointing Inspectors for the purpose of investigating the affairs of DCC plc, S & L Investments Ltd and Lotus Green Limited (“the three Companies”).

2. If appointed, giving directions to the said Inspectors to investigate and report on the affairs of the three Companies as the Court shall deem fit, and in particular:

• to examine and define the transactions which were related to the acquisition, maintenance, transfer and disposal of the beneficial and legal interests of the three Companies in Fyffes plc between February 1995 and April 2000 with particular reference to the periods between:
          o early February 1995 and end September 1995 and
          o early November 1999 to end April 2000;

• to examine whether Parts IV and V and any related provisions of the Companies Act, 1990 were breached by the three Companies, their officers (including shadow directors), managers, employees, servants and agents at the relevant times and if so, to identify the circumstances in question, the provisions involved, the persons in default and all of the associated evidence in each case; and

• to examine any related matters with the prior approval of the Court given on consideration of an interim report from the Inspectors.

3. Such further directions as may be necessary or appropriate in particular an order directing that the Inspectors shall provide the Court with an interim report within six months of their appointment and at intervals of six months thereafter, without prejudice to the right of the Inspectors to make a report to the Court at any time seeking such directions as they see fit.

The High Court has set a date of 9 June 2008 for the hearing of the application.

The Board of DCC is taking legal advice in relation to the DCE’s application and is not in a position to make any further comment at this time.