Relationship of trust
ODD and sad were the goings on at Framlington, the unit trust managers — so City and Suburban was saying two years ago, when Throgmorton Trust was trying to take them over. Framlington resisted, Throgmorton succeeded, and odder things are going on now. Patrick Evershed, .the investment manager, has been to an in- dustrial tribunal complaining of unfair dismissal — and alleging that this came after he had seen what appeared to be insider dealing on the part of other mem- bers of the group and had reported this to the authorities. The tribunal found for him, called his employers' conduct vexa- tious, and ordered his re-employment -- which has not happened. Patrick Ever- shed, Bill Stuttaford, Anthony Milford and Tim Miller were the team to which Framl- ington's 100,000-odd unit-holders had en- trusted their fortunes; none survived the takeover. No one at the time consulted the unit-holders. No one stood up for them. The trustees of the trusts said nothing and did not intervene. The unit trusts' regula- tory body, Lautro, said that this was none of its business. The Department of Trade and Industry, pressed to intervene, de- clined. Now, two contentious years later, the French bank which sold the key share- holding to Throgmorton seems to be think- ing of buying it back. By this time the DTI (and Lautro and the trustees and the Securities and Investments Board and the Unit Trusts Association, which Mr Stutta- ford chaired) have had time to think what ought to happen when a unit trust's man- agement company is taken over — leaving the unit-holders to be bought and sold like the sheep that go with the farm. Either someone should speak for them, or they should be enabled to speak for themselves. Tuesday next is the day of Throgmorton's annual general meeting, and Philip Dar- win, Framlington's former chairman, urges shareholders (who do have a voice and vote) to attend it. Throgmorton's report, he says, gives great concern.
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