Firepower fuelled for legal action

A Bentley-based fuel additives manufacturer, which trades as Firepower, has found itself embroiled in a legal action with the wife of a former executive over its ownership.

Firepower is something of a mystery company, taking a low-key approach to corporate life, yet stepping out onto high-profile stages through retailing auto products and pursuing sports sponsorship, such as the Western Force rugby union team.

Adding to the mystery is a legal action brought by Rhonda Marie Nairn against Firepower Holdings Group Ltd and two directors, Timothy Francis Johnston and former politician Gordon Leslie Hill.

According to documents lodged in the WA Supreme Court, Mrs Nairn claims to have held shares in the parent company of the Firepower group on behalf of her husband, oil and gas executive Trevor Nairn.

She claimed Mr Nairn was CEO until late 2004, until he was allegedly told his services were no longer required by Mr Hill.

In the documents, Mrs Nairn contends that Firepower Holdings Ltd, in which she held 12.5 million shares, no longer appeared to be the ultimate holding company for the Firepower group of companies.

Instead, she claimed, it had apparently been replaced in 2005 by Firepower Holdings Group Ltd, a company incorporated in the British Virgin Islands.

Mrs Nairn attended a pre-trial discovery hearing last week, represented by Freehills partner Steven Penglis, where she produced an affidavit requesting documentation from Mr Hill, represented by Maxim Litigation’s Dean Grondal, regarding the apparent restructuring of the Firepower group of companies.

Mr Penglis told the court, based on the affidavit, his client may have the right for relief against the defendant.

Mr Penglis said this was on the basis that: “the restructuring of the Firepower group of companies in 2004 and 2005, including the defendant replacing Firepower Holdings as the ultimate owner of the Firepower group, was undertaken by the directors of Firepower Holdings in breach of their fiduciary duties to that company.”

Furthermore, he said, “the defendant has been a knowing recipient of the benefit of that breach”.

Mrs Nairn is also seeking documentation from Firepower Holdings Group Ltd and Mr Johnston in separate actions, relating to the defendants’ involvement in the alleged transaction, why it took place, the group’s shareholding after it took place and her current status as a non-shareholder.

Located at the Bentley Technology Park, and with regional offices in Germany, Romania and Russia, Firepower manufactures and sells engine performance enhancers in 56 countries.

According to a 2004 profile on the company, in the late 1990s Firepower developed a dialysis machine to clean the lubrication system of an engine.

After generating significant international attention, the federal government selected the company as one of ten rising stars to be supported through its Austrade global network.

In Australia, according to Firepower’s website, Caltex reseller, Cooper & Dysart and Gull Petroleum both agreed early this year to be stockists of Firepower’s retail range, including a dual branded Western Force/Firepower Pill, ahead of expected publicity from the company’s continuing sponsorship of the Western Force Super 14 rugby franchise.

WA Business News first revealed the nature of club’s relationship with Firepower in May, linking the company with a $750,000 sweetener on top of a multi-million dollar package that secured the services of player Matt Giteau.

Since then, it has signed on as a naming rights sponsor of the Sydney Kings basketball team in July for a period of three seasons, and as a sponsor of the V8 Super Cars series finishing at Bathurst, NSW last week.

Firepower is reported to have hired KPMG to investigate a potential public listing on the London Stock Exchange.