Sell slots, go to jail
Tuesday 7th September 2010, 2:30PM BST.
BLUE ISLANDS board members would go to prison if they sold the lifeline Gatwick slots behind the States’ back, Derek Coates has said.
Breaking his silence over some of the finer details of the proposed deal to buy Aurigny, Mr Coates spoke exclusively to the Guernsey Press to address some of the key questions and challenges opponents of the plan have raised.
A top aviation lawyer argued in yesterday’s Guernsey Press that a golden share was a contractual obligation that could be broken if the airline decided to sell the slots against the States’ wishes. He said that situation could result in Guernsey receiving substantial damages through a legal challenge but never regaining the slots.
Mr Coates (pictured) strongly rejected those claims.
- Read the full story in the Guernsey Press. See below for subscription details.
Campaigns
Voice For Victims
Voice for Victims is a campaign aimed at promoting the rights of those affected by child sexual abuse.
This is Guernsey
Guernsey Press
I can’t believe in his position that Mr Coates believes that when a company breaches a contract then the board go to jail.
Report abuse
Derek Coates is talking rubbish. Section 114 of the Companies Law states, ‘the validity of any act done by the company shall not be called into question on the grounds of lack of capacity by reason of anything contained in the company’s articles’. ??? It goes on a bit more than this but you get the gist.
And Section 115 as well is very relevant dealing with the powers of the directors to bind the company free of any limitations in the articles or resolutions (too long to type it out here)
What this means is that the directors can do as they wish and only later face the civil consequences of their actions. As the UK lawyer correctly said, the States would have to sue and there would be no guarantee of getting the slots back. Where jail time comes in, in a civil matter I’m not sure !
Report abuse
What ridiculous comments from Derek Coates, I cannot believe that someone is his position would make such a fool of themselves.
Report abuse
What a lot of utter nonsense. Let us sincerley hope that our “joke” of a government do not sell this airline as once gone into the hands of this Dollar driven man ( D C that is by the way) what he and his overweight buddies then do is out of all our hands. This man along with Tom S is after lining his own pockets and does not care about This island or its people.
Report abuse
Chris is absolutely right. When a statement like that is made, the question to ask is ‘Under what Law??’
Mr Coates appears not to understand that this country stopped jailing people for breach of civil obligations in the 18th Century. The State’s remedy for a breach of contract would be in damages only.
Report abuse
I’ve never known anybody to be sent to jail for a civil matter such as outlined by Derek Coates. Suffer damages, yes, but jail? Breach of contract or breach of fiduciary duty are civil, not criminal actions. Trading whilst insolvent is potentially criminal, but usually results in the directors of the company becoming personally liable for the company’s debts incurred since becoming insolvent.
I’m intrigued to know on what basis any director could be jailed for selling the slots, and trust that Derek Coates’ legal advisors are somewhat more on the ball regarding the rest of the legal advice that he has received!
Report abuse
I completely agree with Chris – there is no way that any board members of the company owning Blue Islands (which I assume is a Guernsey company) can go to jail for breach of contract under Guernsey law (or in fact the law of most other jurisdictions). Just pure emotive language and nothing more from Coates – and proof that he has no idea what he is talking about.
Report abuse
Oh dear desperate Derek, its time to give up making an ass of yourself….. For everyones sake.
Report abuse
I haven’t seen the entire article, but one would assume that any contract could have a personal guarantee in it from one or more of the directors? Granted any breach would still be a civil matter, but quoting company law is hardly relevant is it? Besides which, I am not sure you are quoting the appropriate sections Chris.
Report abuse
Chris
You are indeed correct,Ole Coatee as he is known up the Plaza may well be somewhat out of his depth on this one.Claiming back VAT and repacking Witches Potions have provided the wealth not a Prison Term.Surprisingly it all seems to fall apart when he trys selling holidays to the people mail ordering his supplements, still to ill to pop round to Boots and buy some vit C they are not jumping on Blue Islands for a Holiday.More over this will only serve to subsidise his Hotels with Budget Package Deals other hotels unable to compete paying over the odds flights.
Report abuse
keep taking the tablets Mr coates,everything will be ok soon!!
Report abuse
90% of supplements can be found in a balanced diet? just a clever man getting very rich selling stuff. not the saviour of all things guern. beware.
Report abuse