Railtrack’s private shareholders numbering around 49,000 were distraught on 14th October. This was due to the fact that their case for compensation claim against the Government for allegedly manipulating to put the company out of business in 2001 was dismissed.
Geoge Weir, the main claimant of the Railtrack Private Shareholders Action Group said: "I'm very cross with the way that things have turned out," While Andrew Chalklen, chairman of the action group who owned 8,000 Railtrack shares said: "This has taught me never to put my money into any company that has any relationship with the government."
The government officials on the other had heaved a sigh of relief when Judge Linday said: “Mr Robinson's heartfelt evidence that the government created Railtrack's insolvency is not acceptable."
The judge did not find improper or dishonest intent. He said: "There is no sufficient material. to infer that Mr Byers, to whom were available good policy grounds for acting as he did, should have acted with a specific intent to impair the financial interests of group shareholders,"
Mr. Justice Lindsay submitted an 84 page decision which exonerated the government, but accused that Stephen Byers, the Transport Secretary in 2001 had "descended to unreason", and his evidence seemed "little above gibberish". The judgment scrutinised all events that took place in 2001 leading to the final administration petition presented on October 7 by Mr Byers.
According to the shareholders, the evidence showed that Stephen Byers had determined well in advance of the October administration petition to use the bankruptcy route. This was to evade paying compensation by effecting a de facto renationalisation of the rail infrastructure company. This, they alleged, amounted to "misfeasance in public office".
Lawyers for Mr Byers defended him saying that his actions were forced by growing concern over Railtrack’s worsening financial conditions which could not afford to overlook public interest considerations, particularly of the travelling public.
But Mr Byers is most likely to have a hard time in the House of Commons where the Tories would be waiting to launch a tirade against him.
Posted
on : Sat, 15 Oct 2005 18:20 GMT | General News
By : Rob Davis
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