7 MARCH 1992, Page 24

Donoughue's summer

Sir: Your correspondent Mr Prince writes to inform you (Letters, 29 February) that I am recorded as having formally resigned from the London & Bishopsgate companies on 17 October 1991. This was of course published in my press statement of 5 December 1991.

It's no good talking to me, Father, I'm an actor speaking his lines.'

As stated there (and in press statements of 25 November 1991 and 6 December 1991) I ceased employment with the com- panies on 31 July 1991, was not paid and played no further part in the affairs of the companies after then. My deed of settle- ment setting out the terms of my departure was effective at 31 July 1991. My prior arrangement with Mr Maxwell, as explained, was to leave on the AGM of the First Tokyo Index Trust, which was on 31 July 1991. During July, IMR0 was notified of my imminent resignation, arrangements were made to return all funds under man- agement and asset management staff were made redundant. My office was then dis- mantled.

The delay in formal resignation until 17 October 1991 was because it was contractu- ally linked to the execution of my terms of departure. That departure was initially agreed in December 1990 and documented between solicitors in March 1991. The terms remained unfinalised from my depar- ture until October because of Maxwell's unavailability and frequent absences abroad — an experience not unfamiliar to departing Maxwell executives.


House of Lords, London SW1