M Winkworth has launched High Court proceedings against its non-executive chair Simon Agace over alleged breaches of confidentiality and other duties.
In a statement to the stock market, the listed estate agency franchisor said it issued proceedings in the High Court of Justice, Business and Property Courts of England and Wales, Business List, following independent legal advice.
The proceedings concern alleged breaches of confidentiality, provisions of a relationship agreement between Winkworth and Agace dating from November 2009, and associated duties as a director under the Companies Act 2006.
Winkworth has also applied for interim injunctive relief relating to proposed changes to the composition of its board and the use and disclosure of confidential company information.
The company is additionally seeking information concerning the disclosure of its confidential information to third parties.
Winkworth stressed that the allegations have not been determined by the court and that no decision has yet been made on its application for interim relief.
The decision to commence proceedings was approved by the directors entitled to participate in the decision after receiving independent legal advice.
Simon Agace served as Winkworth’s chief executive for a number of years until stepping down in 2004. His son, Dominic Agace, became a director at the same time before transitioning to chief executive in 2006 – a position he currently holds. Under his leadership, Winkworth floated on the AIM stock exchange in 2009.
Winkworth said its business continued to operate as usual and that its executive team remained focused on delivering the company’s strategy.
The company added that it would provide further updates as appropriate.
