Contractor to 鈥榲igorously contest鈥� writ from former director claiming unpaid bonuses dating back to 2002

ROK Property Solutions has been forced into a legal battle with Mark Kay, its biggest shareholder and a former director, over claims that he is owed more than 拢5m in bonuses.

Rok received a writ from Kay鈥檚 lawyer last Friday. Kay, who resigned as a director at the end of September, is claiming that Rok owes him a total of 拢5m, plus interest, in unpaid bonuses for 2002 and 2003.

He has retained his 12% stake in the company.

The dispute centres on the interpretation of some aspects of Kay鈥檚 contract with Rok. It is understood that Rok was made aware of Kay鈥檚 belief in his financial entitlement in early 2004.

Garvis Snook, Rok鈥檚 chief executive, said the company would contest the proceedings. He said: 鈥淢ark has a particular view of his entitlement, which is completely at odds with the board鈥檚. We have taken advice that is very firm and we will vigorously defend our position.鈥�

Rok has appointed legal firm Ashurt to advise it on the matter.

We will vigorously defend our position

Garvis Snook, Rok chief executive

If the case goes to trial it will be heard at the Commercial Court, which according to Herbert Smith, lawyer for Kay, has a record of dealing with cases quickly.

Kay joined the Rok board in April 2001 after it acquired his property development company Rockeagle Land for about 拢14.7m. The Rockeagle business has been run by Nick Hole since 2002.

Rok鈥檚 shares dipped slightly when the announcement about the impending legal action was made to the stock exchange on Monday, but it had recovered by the close of trading and finished almost 5%, or 23p up.

Snook said that, despite the fact that Rok was in dispute with its biggest shareholder, it was 鈥渂usiness as usual鈥� at the company, but because of the scale of the claim it was 鈥渙bliged to make a statement鈥�.

Both Kay, who is based in Belgium, and Herbert Smith declined to comment on the proceedings.

Postscript

Rok this week appointed Dave Thompson as health, safety and environmental manager for the northern region. He was formerly health and safety director at contractor Bluestone.