Palmer Capital Partners says its chairman and major shareholder in Frontier Estates, Ray Palmer, is in dispute with Frontier’s two other shareholders over his board position.
The two other shareholders are Adam Eldred and Andrew Crowther.
In an announcement today, Palmer Capital Partners said Ray Palmer and Frontier have disagreed over the direction of the business and, in particular, over its growth strategy.
This comes after the suspension of two other directors of Frontier, Tony Williamson and James Good, after they approached Frontier’s joint managing directors and other shareholders seeking equity in the business.
Palmer Capital said: “The dispute between the parties has come after a period of disagreements between the three main shareholders in Frontier over the company’s management style.
“It is also despite Mr Palmer’s attempts to encourage Mr Williamson and Mr Good to stay at Frontier as part of a regeneration of the business.”
In response, Frontier Estates said it had removed Ray Palmer as a director on 19 November and had issued proceedings in the High Court against Ray Palmer.
“On 19th December, following advice from our solicitors, Mishcon de Reya, and counsel, we removed Ray Palmer as a director of Fronteir Estates, and we suspended Tony Williamson and James Good, with immediate effect,” said Frontier in a statement.
“These steps were taken after a careful and considered review by our lawyers of material that we uncovered in the course of our investigations. On Monday 29th November we issued proceedings in the High Court against Ray Palmer, Tony Williamson and James Good for damages and injunctions for conspiracy to injure and breach of contract.
“Adam Eldred and Andrew Crowther founded Frontier in 1996 and are majority shareholders with 66%. Frontier has five active executives, including Adam Eldred and Andrew Crowther, Mike Mansell, Damian Wood and Will Rees.”
Christopher Digby-Bell, the non-executive director of Frontier, and deputy chairman of Palmer Capital, stated: “It is a great shame that the parties have fallen out but as the independent non-executive director I will work towards a solution that is not only best for Frontier, but also for its employees and for the investors whose properties Frontier manages.”
The company said despite the issues, Frontier will remain asset managers of properties owned by investors in various Palmer Capital managed funds.
nathan.cross@estatesgazette.com
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