Vertex directors strive to reach out-of-court agreement

Lawyers representing Vertex's two warring board factions were yesterday locked in talks as they strove to avoid a court battle.

On Friday, Vertex managing director Paddy Boyle and independent director Sandy Maier said they would on Monday ask the High Court to declare illegal the appointments in September of Vertex's other three directors.

But yesterday, Boyle said the two factions were now trying to reach an out-of-court agreement. Such a development would be better for Vertex's 3000 shareholders than a protracted legal fight.

The other three directors are chairman Warren Bell, Mark Stewart and Warwick Webb.

Boyle says Stewart and Webb have a conflict of interest because Stewart's family company, Masthead, which is Vertex's biggest shareholder, also controls Vertex rival Alto Plastics. Webb is a consultant to Masthead.

Masthead bought 19.9 per cent of Vertex in September from Gould Holdings. Stewart, Webb and Bell were voted on to Vertex's board in September by the three outgoing Gould Holdings' directors.

Stewart said yesterday that Boyle and Maier had yet to explain why they believed his, Webb's and Bell's appointments were invalid.

He was considering asking the court to rule on a temporary governance arrangement for Vertex until the listed plastics company's directors solved their differences.

Stewart and Webb are being represented by Auckland law firm Mayne Wetherell.

Boyle's and Maier's lawyers, Simpson Grierson, were preparing to file court papers as soon as today should an agreement not be reached.