Nagle wants a Payzone egm to sack three directors

OUSTED PAYZONE chief executive John Nagle is set to seek the sacking of three of the company's independent directors.

Mr Nagle, who owns an 11 per cent stake of the company, is behind a request that it hold an extraordinary general meeting (egm) to vote on a proposal to remove non-executive director David Mills from the board.

The electronic payments group confirmed yesterday that it had received the request, as shareholders met in Dublin to vote on its plans to issue 137 million new shares and raise €40 million.

Since Mr Nagle holds more than 10 per cent of Payzone's shares, the company will have to comply with his request to hold another meeting to consider his motion to have Mr Mills dismissed. The proposal will need the support of shareholders with 75 per cent of the company to succeed.

Mr Nagle said yesterday that he also intends to seek the removal of interim chairman Peter Smith, and fellow independent director David Golden, but not at the same meeting at which he will seek Mr Mills's dismissal.

The three were non-executive directors of British company Cardpoint, which merged with Irish electronics payments group Alphyra last year to form Payzone and floated on London's Alternative Investment Market (AIM).

But a row broke out between the two after a €150 million share sale was cancelled and the company's value fell by 33 per cent.

Mr Nagle said yesterday that the three non-executives were "party to" the original Cardpoint board and should not be directors of the new company.

Shareholders voted to dismiss Mr Nagle and chief financial officer John Williamson at a meeting last March.

In January, chairman Bob Thian dismissed both men from their posts, but the High Court subsequently ordered their reinstatement on the grounds that they were denied fair procedures. Mr Thian has since left the company.

Recently appointed chief executive Mike Maloney announced Payzone's plan to raise €40 million last month.

The company has a three-year growth plan and intends to use the cash raised to strengthen the business and invest in future growth.

Payzone also said last month that it expects to lose €30 million this year. However, its new chief executive believes that the company can cash in on strong market positions in Europe.

The company develops and sells technology used in credit and ATM card payments.