Sacked Wrightson chief strikes 'amicable' deal

By LIAM DANN

WRIGHTSON managing director Allan Freeth, who threatened legal action after being sacked from his job on Tuesday, has agreed terms with his employer.

The deal means Freeth will be a consultant to the company for six months after stepping down on July 16.

Virtually the entire Wrightson board quit on Monday after Rural Portfolio Investments, led by Craig Norgate, won control through a partial takeover bid.

Freeth was axed the following day and said he was shocked by the announcement, which had been "made without any prior substantive consultation or discussion".

Yesterday Wrightson's new chairman, Keith Smith, issued a statement describing an "amicable agreement".

"After eight years with Wrightson ... leading its restoration and creation of shareholder value, Allan has considerable knowledge of the sector and the company that will be valuable to the new board."

Freeth said he was "committed to Wrightson's success and its ongoing development".

The company will be run by acting chief executive Barry Brook, a senior Wrightson executive and 20-year veteran with the company, until a permanent CEO is appointed. The recruitment process is expected to take several months.

The outwardly amicable deal with Freeth contrasted with comments from Shareholders' Association chairman Bruce Sheppard, who has lashed out at the standard of corporate governance displayed by Craig Norgate and RPI since they took control of the rural services company.

Media reports yesterday quoted Sheppard raising concerns about Freeth's dismissal.

"If [Freeth] is to be dismissed - and there are ways you can do that that cause damage and ways that don't - it would be nice if there were some independent directors there to make an informed decision on that, rather than having the major shareholder with their own vested interest doing it," he told media.

RPI has appointed only one independent director - new chairman Keith Smith.

Axed board member Jeff Grant said he was not surprised by the RPI clean-out.

If one company went to the market and bought the majority of another company, then it had a right to choose the makeup of its board and its management, he said.

But Grant said RPI should remember that it held only 50.01 per cent.

"If they were to stay with just one independent as chair I would say that is not good governance," he said.

Grant said he would watch with interest any changes around the possible removal of Alison Patterson and David Brownrigg.

Patterson and Brownrigg have been allowed to stay on the Wrightson board for the moment.