Four Courts, Dublin

At the launch of his Office’s Annual Report for 2007 today, Paul Appleby, the Irish Director of Corporate Enforcement, announced that he has now applied to the High Court to appoint Inspectors to DCC plc, S&L Investments Limited and Lotus Green Limited. The primary purpose of his application is to examine the discrete issue of the disposal and acquisition by the three companies of legal and beneficial interests in the shares of Fyffes plc between February 1995 and April 2000.

In a briefing morning, following the resignation of DCC founder Jim Flavin (see link below) from the role of executive chairman last night, Appleby said it was his considered view that investigations by his office would “face substantial difficulties in acquiring a standard of evidence sufficient to ground any future enforcement proceedings.”

During his press briefing, Appleby said: “It is a matter of public record that my Office monitored the civil insider dealing proceedings in 2004 and 2005 between Fyffes plc and DCC plc, S&L Investments Limited, Mr James Flavin and Lotus Green Limited. After the Supreme Court ruled in July 2007 that the Defendants had engaged in insider dealing in February 2000, I took the unprecedented step of making submissions to both the Supreme Court and the High Court adverting to their power to make a disqualification order against any person in any proceedings once certain matters had been established. However, neither Court chose, as was their right, to exercise the legal option available to them in the insider dealing proceedings.

While a very substantial amount of evidence was considered by the High Court in the course of those proceedings, the rules of evidence place considerable constraints on the circumstances in which that evidence may be used for other purposes. It is my considered view that in any further investigations, my Office would also face substantial difficulties in acquiring a standard of evidence sufficient to ground any future enforcement proceedings.

Against this background, I have decided recently that a High Court inspection offers the best prospect at this stage of properly investigating the issues which require attention. This has been used successfully in the past, and I am optimistic that such a course of action, if sanctioned by the Court, would satisfactorily address all of the matters of concern.

Following significant preparatory work, I applied to the High Court yesterday for the appointment of inspectors to investigate the affairs of DCC plc, S&L Investments Limited and Lotus Green Limited with particular reference to the disposal and acquisition of legal and beneficial interests in the shares of Fyffes between February 1995 and April 2000. I expect that the Court will hear this application shortly.

If inspectors come to be appointed by the High Court, they will report back to the Court in due course. On receipt of a final report, I will determine if there are sufficient grounds to justify taking action against anyone who may be criticised in it.

As the matter is now sub judice, I will not be making any further comment in advance of the Court determining the merit of the application. This means that I will also be avoiding comment on last week’s developments with respect to the statements issued by the board of DCC and the Irish Association of Investment Managers. To the extent that comment is necessary and appropriate, I will be addressing the High Court on the relevant issues at the appropriate time.”