are headed for a High Court showdown with former partner Paul Davis over a bonus
Davis, who earned £220,000 from the company last year, has accused the firm
of underpaying his bonus and is demanding damages of more than £300,000.
Begbies Traynor is one of the UK’s leading rescue, recovery and restructuring
A partner in the firm for 12 years, Davis was paid a bonus of £75,000 in 2006
and £50,000 in 2004 and 2005 but he only received a £20,000 bonus in his final
year. This, he says, was arbitrary, capricious, and lacking in good faith, and
was because his annual fixed sum had doubled from £100,000 to £200,000.
He accuses Begbies Traynor of breaching its agreement with him, and of
refusing to put right the breaches, despite being given chances to do so. The
firm told Davis that payments he received as additional profit share should be
offset against his entitlement to a fluctuating profit share, he says.
Davis resigned from the partnership on October 17 and says he has lost
benefits including profit shares for the past three years, £200,000 for the
coming year, profit share for this year estimated at £75,000, private medical
insurance and use of a £40,000 car plus running costs, and other benefits.
He has also lost the chance of a bonus for 2007/08, of around £75,000,
according to the writ.
A Begbies spokesman said it rejected the claim and would launch a counter claim
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies
Smith & Williamson has been appointed administrators of charity 4Children