Kenmare Resources yesterday removed director Donal Kinsella as chairman of the audit committee at the exploration and mining firm but he remains deputy chairman of the group, writes Senior Business Correspondent Arthur Beesley.
Endorsed by each of the 10 other directors on the board, his removal from the chairmanship, but not from the committee itself, comes almost two months after a night-time "incident" at the company's new titanium mine at Moma in Mozambique.
Directors and senior managers had travelled there for a site visit and celebratory dinner to mark the opening of the mine. Mr Kinsella (64) has acknowledged taking alcohol at the dinner, which was served in the canteen block on the mine site on the evening of May 8th. Afterwards, the visitors retired to the accommodation block nearby.
Mr Kinsella shared a room there with Charles Carvill, chairman of the firm and father of managing director Michael Carvill. He undressed for bed. He does not wear pyjamas.
Without dressing, Mr Kinsella left his room some time after 2am on May 9th. He said he was sleepwalking at the time. In the following three hours, he went to the room of company secretary Deirdre Corcoran three times.
An inquiry by solicitors O'Donnell Sweeney Eversheds heard he opened the door and was "clearly visible" in his naked state from the room. He stood at the threshold or took one or two steps inside, the inquiry heard. "I definitely did not enter her room. I've been a sleepwalker all my life and I was sleepwalking on this occasion," Mr Kinsella said.
He was prevented on the third occasion from entering the room by Michael Carvill, who had heard a commotion.
Kenmare sought Mr Kinsella's removal as committee chairman because Ms Corcoran felt she could no longer work with him on a one-to-one basis as would be required in her capacity as committee secretary.
Mr Kinsella has apologised and said he had a written indication from the company that an apology would suffice to close the matter. Kenmare sources said a letter to Mr Kinsella from Charles Carvill on June 23rd was silent on whether he should resign. The sources said Mr Carvill made it clear to him in conversation that he should stand down.
A special board meeting yesterday was prompted by Mr Kinsella's refusal to resign.
Mr Kinsella said he wanted to raise concerns he had about the company's governance with the audit committee. He declined to specify his concerns.
"Whatever issues he has will be presented to the new chairman to the audit committee, Peter McAleer, and he will look into them," said Kenmare's spokesman.
Mr Kinsella said he has initiated legal proceedings over his removal as chairman of the audit committee. "I am shell-shocked. I am amazed at the activity of the board in removing me. I am very surprised at this point and hurt."
