Mission Capital has launched legal action to recover £35,000 from ousted former directors Neil and Emma Sinclair.
In an AGM statement to shareholders this morning, the company alleged its former executive chairman and managing director had “improperly applied the company’s funds in certain matters of their personal expenditure”.
The statement claimed “previously unrecognised liabilities” of £225,000 had also come to light following the departure of the Sinclairs on 5 February.
Mission Capital said the use of the £35,000 had come to light as it defended a High Court bid by the father and daughter, the company’s former executive chairman and managing director, to be reinstated to the company in March.
The statement said: “The company is now taking action to recover these funds from the Sinclairs while continuing to investigate further personal expenditure.”
Mission Capital said it would seek a further £200,000 from the pair in legal costs as it warned the boardroom row would result in trading losses in the half year to 31 March 2008 and in an overall loss for the year to 30 September 2008.
It said interim results to 31 March will be released at the end of June.
The Sinclairs argued in the High Court on 12 March they should be reinstated to the board of the AIM-listed property company to protect its interests from the remaining shareholders, alleging they were the victims of a “sudden and brutal coup”.
A full trial is not expected to take place until the autumn.
Mission Capital announced separately today the appointment of an additional independent non-executive director, Philip Goldenberg.
