Fire engine firm takes own boss to court

Fresh controversy surrounded AssetCo today after it emerged the outsourcer that maintains London's fire engines took its chief executive and biggest shareholder to the High Court last night to force him to back fundraising plans.

Investors were expected to approve a £16 million share placing at a general meeting yesterday but it was postponed after John Shannon, AssetCo's boss who owns 30% of the company, refused to vote. It won their backing today but shares plunged more than 10% to 13p after being suspended yesterday.

AssetCo needed to secure the funding to pay creditors including Lloyds Banking Group.

Last night, the High Court granted AssetCo an injunction forcing Shannon to vote in favour of all the resolutions proposed at the reconvened general meeting today.

But Shannon did not attend the meeting - AssetCo claimed he had "gone on holiday".

Matt Wrack, general secretary for the Fire Brigades Union, said: "This is not any old company. Every person in London depends for their safety on the health of this company."