Winkworth has declared a third-quarter dividend of 3.3p per share amid an ongoing boardroom dispute. The announcement comes as the estate agency franchisor continues settlement talks with its non-executive chairman, Simon Agace.
The AIM-listed company confirmed that shareholders on its register on 23 October will qualify for the payment. Shares will trade ex-dividend from 22 October. Investors buying shares on or after that date will not receive the payout. Winkworth expects to pay the dividend on 20 November.
High Court proceedings on hold
Winkworth recently confirmed a one-month pause in its legal battle with Agace to allow settlement discussions. The dispute centres on alleged breaches of confidentiality and a relationship agreement dating from November 2009. It also involves allegations concerning directors’ duties under the Companies Act 2006.
The court has yet to determine the allegations. Both parties have agreed to a consent order, which the High Court has sealed. Agace must also continue to comply with undertakings he previously gave to the court. The court adjourned a hearing originally scheduled for 5 October.
Independent board review under way
Winkworth has also commissioned an independent review of its board and corporate governance arrangements. An external advisory firm has provided initial recommendations. The company expects to receive the full findings in the coming weeks.
The review covers board composition, succession planning and the independence of non-executive directors. Agace previously served as Winkworth’s chief executive before stepping down in 2004. His son, Dominic Agace, took over as chief executive in 2006 and continues to lead the business. Winkworth has not linked the dividend announcement to its ongoing legal dispute.
