GUINNESS STARTS COURT ACTION AGAINST SAUNDERS
Guinness Plc <GUIN.L> said it has
started court proceedings against former chairman and chief
executive Ernest Saunders and non-executive director Thomas
Ward for recovery of 5.2 mln stg.
    The money was paid to Ward via Marketing and Acquisition
Consultants Ltd in Jersey.
    Guinness said earlier it would propose a resolution at the
annual meeting in May to remove Saunders and Ward as directors
of the company.  Earlier this month, lawyers for Ward told a
Jersey court that Ward saw the payment as his reward for
services in last year's takeover battle for <Distillers Co
Plc>.
    Guinness has said that both men breached their fiduciary
duty in authorising the payment.
    Saunders resigned from his executive positions at Guinness
in January in the aftermath of a government enquiry into share
dealings during the battle for Distillers but retained his
position on the board.
    No spokesman for Guinness was immediately available for
comment on the statement.
 REUTER
