PracticeAccounting FirmsGovernment faces legal action over Railtrack

Government faces legal action over Railtrack

Railtrack Group has threatened court action to force the government to disclose all key documents related to subsidiary Railtrack plc being placed in administration.

The group announced yesterday it had made a request to the Treasury Solicitor and said if the request was not met it intended to apply for ‘pre-action disclosure’ from the court.

As it prepares to join shareholders in a its lawsuit against the government, Railtrack Group also said it had restructured its board, appointing former finance director David Harding as chief executive.

Harding is taking over from Steve Marshall, also a former finance director, who resigned as chief executive when transport secretary Stephen Byers put the company into administration.

Railtrack Group also appointed Geoffrey Howe, former managing partner of Clifford Chance, company chairman, to succeed John Robinson. Both Marshall and Robinson will remain with the company as non-executive directors.

Howe said: ‘We cannot understand why the Treasury Solicitor will not disclose the documents we are seeking – why should the government refuse if it has nothing to hide’

‘No one wants to start legal action unnecessarily, but if it is the only way to secure value for shareholders, then the Railtrack Board will pursue this course vigorously.’

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