A legal fight between CallPlus founders Annette Presley and Malcolm Dick over a telecommunications venture will go to trial.
A decision by Justice Helen Winkelmann at the High Court at Auckland yesterday cleared the way for a trial to proceed on behalf of CallPlus against Dick for breach
of fiduciary duty.
The action centres on a new voice-over internet protocol (VoIP) venture, 2Talk, formed by Dick and CallPlus chief executive Martin Wylie late last year without Presley's knowledge.
Presley claims Dick and Wylie breached their duties as directors by using CallPlus resources and employees to establish a business in competition with CallPlus.
In her judgment, Justice Winkelmann said a prudent business person would pursue action and leave should be granted. Presley said yesterday the decision to pursue legal action was a hand dealt to her by the directors and shareholder of 2Talk and not a choice she made.
"At the end of the day, the courts and the law are protecting the rights of a minority shareholder and for that I've got to be pleased," said Presley.
Since legal proceedings began in July, the shareholding of 2Talk has been restructured and the legal action now involves only Dick.
He contends CallPlus assets weren't used by 2Talk and CallPlus was set to benefit from an option agreement which could see 2Talk ownership transfer to CallPlus in 18 months.
"The whole thing's crazy in my view," said Dick. Costs for the action would be born by CallPlus, so Dick said he would be paying half the legal bills on one side and all of them on the other.
He estimated the costs had already surpassed the cost of starting 2Talk.
Relations between Presley and Dick have become increasingly strained since the end of their marriage in June last year and her departure from the day-to-day running of the business they formed together more than 10 years ago.
Presley is a major shareholder of CallPlus but is represented by accountant Keith Goodall at board meetings.
