When Garry Donoghue left Plus SMS last year with the text messaging company facing scandal, a Securities Commission investigation and a plunging share price, he agreed to give back all his 85 million shares.
Now, as the business appears to be recovering under a new chief executive, Donoghuemay be planning to challenge his settlement deed with the company he founded.
Last September NZX-listed Plus SMS admitted making incorrect statements, a Securities Commission inquiry was launched and Donoghue and chairman Jim Bracknell resigned.
Shares which had been as high as 82c plummeted to 16c.
Next month shareholders will vote on the buyback, for no payment, of 85 million shares held by interests associated with Donoghue - worth $14.4 million at yesterday's closing price of 16.9c - as part of a settlement deed.
Donoghue said at the time of his resignation that he was returning the shares because the firm had not achieved its goals and objectives.
But Plus SMS executive chairman Christopher Tiensch said yesterday Donoghue had indicated he might yet challenge the settlement agreement.
"We haven't been formally notified in terms of an actual proceeding but we have been notified by Garry himself that he potentially may challenge the settlement deed for whatever reason he's considering."
Donoghue could not be contacted for comment.
As part of the settlement deed, Plus SMS agreed not to take action against Donoghue.
"While the settlement will prevent the company taking any action against Garry Donoghue, it does not preclude shareholders or other third parties taking action," the company has told the New Zealand Exchange.
"The Securities Commission has stated to the company that the settlement deed will not preclude it bringing action against Garry Donoghue."
Donoghue could still take action even if the deed was approved at the February 2 meeting, Tiensch said.
The return and subsequent cancellation of the 85 million shares could not then take place until any challenge was resolved.
When the deed was drawn up the board believed it was in Plus SMS's interests to move on rather than devote resources to an inquiry - a position the company said it still held.
