Royal Group dismisses founder Vic De Zen, fires two executives
A special committee of independent directors at building products manufacturer Royal Group Technologies Ltd. (Woodb...
A special committee of independent directors at building products manufacturer Royal Group Technologies Ltd. (Woodbridge, ON) has fired president and CEO Douglas Dunsmuir and senior vice-president and CFO Ron Goegan, and dismissed founder Vic De Zen from his position as chairman of the board.
The action follows disclosure of a related-party land transaction which took place in 1998 and involved these three businessmen. The transaction concerned the purchase in Woodbridge, ON, of approximately 185 acres of land by a numbered company, owned by De Zen and associates, including Dunsmuir. The purchase price was $20.5 million. Immediately after the closing of that purchase, the property was sold to Royal Group for $27 million. The fact that the land purchase was a related-party transaction, and that the related party would profit from the deal, was not brought to the attention of the Board of Directors in 1998. Goegan is said to have facilitated the transaction.
“At the very least, in the unanimous opinion of the special committee, the roles played by Dunsmuir, Geogan and De Zen in these matters showed a breach of their responsibilities to the company, causing us to terminate their positions,” says James Sardo, who will serve as interim president and CEO of Royal Group.
Sardo is an independent director who joined the Board of Royal Group in November 2003. He has extensive senior management experience in publicly owned companies, including a stint as president and CEO of a U.S.-based window and siding company.