Palmer & Harvey directors, former directors and other shareholders extracted about £70m in cash from the grocery wholesaler over the past nine years despite ongoing losses. These “B preference” shares pay out a fixed dividend twice a year. Half of this payment was deferred under an agreement with shareholders which pledged that it could be repaid if and when the B preference shares were ultimately redeemed. In 2009, Etherington also held another form of preference share, the “A preference”, that entitled him to an annual dividend. This was repayable on the sale of any shares held by him.

Source: The Guardian December 01, 2017 18:33 UTC