Actinic protesters call for FSA intervention

The Financial Services Authority, the City's watchdog, has been asked to investigate shareholder complaints about the conduct of directors at the small computer software firm Actinic.

Paul Scott, an investor who has also campaigned at sports media company Teamtalk, wrote to the board of directors and the FSA last week. He claims to represent private investors with around 5 per cent of the shares in the company.

"We believe there is a serious and unacceptable conflict of interest in play at Actinic," his letter stated.

In February, the company announced plans to return £5m of cash, or 4p per share. It said it would set out the proposals in April. But in April the company said it was aiming for a management buy-out of the assets or a liquidation, and to return the remaining cash to investors. The letter added: "We are requesting that the FSA investigate both the sloppy conduct of the proposals so far to return cash to shareholders, and the obvious conflict of interests for directors."

Mr Scott is concerned that the 4p level has been scrapped, and that the non-executive directors are not independent enough to vote on an MBO. The length of time it has taken is also a concern because the company is loss-making, so the cash reserves are being eaten up. "We will not tolerate the existing management preparing the company for an MBO at the potential disadvantage of existing shareholders," states the letter.

Actinic raised £25m in cash at its flotation in May 2000 and shares soared to 268p. They are now at 5p after continuing losses in its results, and several profit warnings.

The board of directors said it will announce the details of its plans at the end of June. "[The directors] feel the timetable is satisfactory," a company spokesman said. "Paul Scott is entitled to his opinions as a shareholder."