|29.12.2014 - The Board of Directors of PI Power International Limited (in liquidation) (PI or the Company) announces that it has been informed of the decision of the Royal Court of Jersey (the Royal Court) in the proceedings with its former director and Chairman Wolfgang Vilsmeier. As previously reported by PI, Mr Vilsmeier claimed against PI for unpaid overtime fees, expenses, and unreimbursed costs associated with personal security, in the aggregate amount of approximately TEUR 135 (adjusted for current exchange rates). The Company defended the claims on the grounds that Mr Vilsmeier’s reported overtime hours and security costs were unauthorized and unnecessary.
Mr Vilsmeier‘s largest claim for unreimbursed expenses included the costs of personal protection for himself and his family members, primarily for the installation of bullet proof windows and reinforced doors in his personal residence. The Company contended that the security steps Mr Vilsmeier undertook were not properly authorized by the Board, and were not a result of any legitimate or identifiable security threat to Mr Vilsmeier or his family. The Company filed counterclaims to recover from Mr Vilsmeier certain costs paid by the Company during the time he was the Chairman. Those costs included amounts paid to supply body guards for Mr Vilsmeier’s personal protection, in the amount of approximately TEUR 441, and for internet forensic services he mandated, in the amount of approximately TEUR 145.
The Royal Court found in favor of the Company with regard to Mr Vilsmeier’s claims for overtime fees for the months of June and July 2009 but found in favor of Mr Vilsmeier for his overtime fees for the month of May 2009.
With respect to the security related costs, the Royal Court found that Mr Vilsmeier had breached his fiduciary duties and contractual duties to PI. Consequently, the Royal Court refused reimbursement to Mr Vilsmeier of security costs he claimed from the Company during the period he was held to be in breach of his duties. Regarding the Company’s counterclaims for security costs, the Royal Court relieved Mr Vilsmeier of liability pursuant to Article 212 of the Companies Law (Jersey) on the basis that he was found to have reasonably believed the security measures he put in place were necessary and in the Company’s interests, despite the fact that the Court had before it no independent evidence of the existence of any threat to Mr Vilsmeier or his family. The Royal Court denied the Company’s counterclaim for the cost of internet forensic services.
PI is ordered to pay to Mr Vilsmeier €17,750 in respect of overtime fees, and €15,673 of expenses, plus a portion of the amount of security-related costs claimed by Mr Vilsmeier in an amount to be agreed between the parties; in addition, the Company will pay interest on these amounts and a portion of Mr Vilsmeier’s costs of the proceedings in an amount to be determined.
The Board of Directors is disappointed with this outcome; the Board is considering its options with respect to these matters and will inform the certificate holders when further information is available.