Former director Palm has to repay millions to ENNIA
WILLEMSTAD — Former Ennia Holding and Ennia Investments director Ralph Palm and his company Palm Management Services have to repay the insurance company close to 4 million guilders, the Court in First Instance in Curacao ruled. It also granted a small counterclaim by Palm.
Palm has to repay 3,318,551 guilders plus another 532,177 guilders for a total of 3,850,728 ($2,151,245). The court ordered ENNIA to pay Palm’s counterclaim of $39,516.
On February 14, 2011, Palm was appointed statutory director of Ennia Holding. Almost a year later, on January 1, 2012, followed his appointment as director of Ennia Investments. Ennia fired Palm in August 2018.
Palm received a monthly salary of $300,000 plus an annual bonus for at least the same amount.
Between June 2, 2015, and April 20, 2018, Palm paid his management company bonus-advances for a total amount of 2,387,500 guilders ($1,333,799).
The former director charged more than 532,000 guilders to the company credit card, received car allowances while he was driving a company car, rental allowances while he was living in his own house and compensation for medical treatment while he was only entitled to the costs of his health insurance, plus more than 110,000 guilders for “miscellaneous housing expenditures.”
Most of these payments lacked a legal basis because they were not a part of Palm’s remuneration contract. The bonus payments lacked the required approval from the chairman of the supervisory board (major shareholder Hushang Ansary) and the supervisory board itself.
Palm claimed that Ansary had verbally approved the payments, but that was insufficient for the court. “Issues concerning advance payments were always agreed verbally with Ansary. That was customary within Ennia,” the attorneys for Palm said.
The court stuck to the remuneration decree. That document established Palm’s right to an annual bonus “established by the chairman of the supervisory board and approved by the supervisory board.”
The court found no evidence for a formal agreement about the bonuses. “Managers of a company like Ennia have to ensure correct decision making and reporting.”
Palm used company credit cards for undocumented cash withdrawals. He spent the money at jewelers, exclusive watch-companies, clothing stores and for event tickets.
The former director also has to pay almost 32,000 guilders ($17,877) for the costs of the procedure.
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