Glasgow company Select Residential plc is suing its directors, Stephen Goldberg and William Gibberson, for damages for breach of duty.
The claim centres on the purchase by Select of six flats in Upton Park, Slough, and a number of flats in Portsmouth. The company claims that the purchases were not in its best interest, and claims that the directors breached their fiduciary duty and duties of care, skill and diligence.
Select allegedly purchased the Upton Park flats for £260,000 from a company of which Goldberg was a director. It claims that it received no commercial benefit from the transaction, which, it maintains, took place only to enable the company to discharge certain debts. Select estimates its net loss at more than £17,000.
The claimant further contends that, in 1997, an associated company, then called Mountrace, purchased long-term leases of flats in Avalon House, Commercial Road, Portsmouth, and channelled costs of more than £17,000 through Select.
Select is also suing the directors in respect of a claim that they had incurred professional fees over a commercially unviable plan to merge Select with River Bure Property Co Ltd. It believes that the proposal was solely for their personal gain, and led to Select incurring penalties with the Inland Revenue and Companies House.
PLS News 30/1/03
