The Stel Salaried
Pensioners Organization wishes to thank The Hamilton Spectator for permission
to post the following article by Reporter Tara Perkins published in the March
9, 2005 edition
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Mar. 9, 2005. 12:45 AM |
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Ex-directors fight Stelco ouster |
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By Tara Perkins |
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Two former Stelco directors say a judge overstepped his bounds when he had them removed from the steelmaker's board. In documents filed with the court of appeal yesterday, lawyers for Roland Keiper and and Michael Woollcombe say the judge erred because there is no jurisdiction in bankruptcy laws to remove directors. They add that Superior Court Justice James Farley found no misconduct or bias on their part, only the "apprehension of bias." Stelco added the two men to its board Feb. 18, the same day the steelmaker began evaluating offers to buy or refinance the company. Keiper is the president of Clearwater Capital, an investment company that holds a large stake in Stelco. Woollcombe is an external adviser to Clearwater. One week after their appointments, Farley ordered the two men off of the board. The judge said they represent one group of Stelco's stakeholders -- the shareholders -- and might not work in the best long-term interests of all the other stakeholders, including employees. The court of appeal will decide March 18 whether or not to accept Woollcombe and Keiper's case. If it chooses to accept it, three judges will listen to arguments from the two shareholder representatives on that same day. Stelco's union, the United Steelworkers of America, is opposing the appeal. tperkins@thespec.com 905-526-4620 |