Queens Moat row returns to court
The responsibilities of accountants are under Appeal Court scrutiny in a multimillion pound legal battle between hotel chain Queens Moat Houses, as threee of its former directors returned to court this week.
Pounds 42m of dividend payouts made to 58,000 shareholders. But the company is seeking to increase the payback. It claims it is entitled to more than Pounds 57m plus nearly Pounds 33m in interest, bringing the total payback to over Pounds 90m. A major aspect of the legal argument revolves around the level of reliance those in business are entitled to place on financial advisers.
The directors claim the High Court judge in making the massive award against them failed to give sufficient weight to the fact the board of directors had directly or indirectly relied on the company’s auditors and accountants since 1967, not only in their role as auditors, but also as financial advisers.
The former directors are John Bairstow, Martin Marcus and Allan Porter. The hearing continues.