Former Chairman of CLICO Holdings Barbados Limited Leroy Parris has hit back at the judicial managers of the insurance company over a lawsuit that he said suggested he was not entitled to a $3.3 million payment.
Former Chairman of CLICO Holdings Barbados Limited Leroy Paris
Speaking for Parris, one of his four attorneys, Hal Gollop QC today sought to clear the air on matters he said have led to a misunderstanding, causing his client unnecessary, hostile and unfavourable public exposure.
A lawsuit was filed in the High Court last week by judicial managers Deloitte Consulting asking that Parris, Branlee Consulting Services and the estate of late Prime Minister David Thompson who was the attorney for the company account for the money, noting that there was no resolution from the board of directors of CLICO International Life Insurance Company to authorize payment.
However, Gollop supplied documents that he argued would show that there was no “hanky-pankying” going on.
These documents revealed that there was a unanimous resolution, dated May 15, 2005, from the board of directors of parent company CLICO Holdings Barbados Limited, which gave the green light for the payment.
That resolution stated that all action taken by Lawrence Duprey as principal shareholder and chairman of the parent company, CL Financial, in negotiating and settling an agreement for management and professional services and related matters with Parris’ firm Professional Financial Service be ratified, approved and confirmed.
It also resolved that all actions taken by Terrence Thornhill as director of the company, in executing the said contract with CL Financial and Professional Financial Services Inc, be ratified, approved and confirmed.
Gollop said the life insurance company, being a subsidiary, therefore had to be directed by that parent company.
Hal Gollop QC
“So that if the resolution has come from the parent, the parent just directs the payment. Where the parent gets the money is a matter for the parent’s own discretion and governance. If the parent takes the money from one of its subsidiaries who can stop that?” he pointed out.
Gollop also produced an agreement between CLICO Holdings Barbados Limited and the business owned by Parris; and a letter dated June 18, 2010, addressed to Parris on behalf of his company and signed by acting chairman Terrence Thornhill, informing him that annual bonus of $200,000 was payable to him by CLICO Property Development Inc.
“In addition, under a contract commencing May 15, 2005, CLICO Holdings Barbados Limited will pay to you a gratuity of $10 million on May 15, 2008. $3,3333,333 of this amount has already been paid,” the letter concluded.
Gollop said that the $3.3 million at the centre of the court action formed a part of the gratuity due to Parris.
Apart from Gollop, Parris is represented by Vernon Smith QC, Steve Gollop, and Michael Yearwood.