A BUSINESSMAN who participated in “bribery offences” has lost a bid to overturn a court order compelling him to sell millions of pounds of holdings in a firm for less than its true market value.

Nigel Gray had gone to the Court of Session in Edinburgh to argue that civil judge Lord Tyre was wrong to force him to sell his interest in Braid Group (Holdings) Ltd to the company for £2,444,000.

The judge had made the order because he concluded Mr Gray was a so-called “bad leaver.”

The judge came to the conclusion because Mr Gray allowed illegal activities involving the Glasgow-based logistics company to take place.

The business, which specialises in freight transport, allowed workers from other firms to benefit from gifts, foreign travel, holidays and cash. Workers who benefited from the scam then placed business with the Braid Group.

In October 2015, Lord Tyre ruled the law stated that as a consequence of his actions, Mr Gray had to sell his interests at less than their market value.

However, Mr Gray, a former chief executive at Braid, argued the judge should have ruled he should receive 10 times the amount for his holdings, at £20,614,000.

In a written judgement issued at the Court of Session, appeal judge Lord Menzies ruled Lord Tyre’s judgment be quashed.

However, fellow appeal judges Lord Brodie and Lord Malcolm ruled their colleague Lord Tyre had interpreted the law correctly.

In his judgment from last year, Lord Tyre found Mr Gray authorised the arrangement for bribery of Mr James Park, who worked for a company called SGL.

The judge ruled Mr Gray also authorised the arrangement for bribery of an individual called Mustafa Kanafani, who worked for a business called Sapesco.

The court heard that an account, known as the CFT account, was created for the bribery of Mr Park, a director of SGL Carbon Fibers (Fibers) at Mr Gray’s instigation.

Mr Park, his family members, and others benefited through gifts, foreign travel holidays and cash.

In return, he ensured an increased volume of business was placed with Braid by firms in the SGL group.

Investigations also revealed Mr Kanafi, who worked at an Egyptian oilfield services firm, had sought and received bribes in return for Sapesco Business to Braid.

In a 102-page judgment, Lord Tyre had written: “It is acknowledged by Mr Gray that participation in an arrangement for bribery of a senior executive of a customer company would, in principle, amount to gross misconduct.

“I have found in fact Mr Gray did authorise the arrangement for bribery of Mr Park of SGL, as well as the separate arrangement for bribery of Mr Kanafani of Sapesco and did therefore participate in both of these arrangements.

“I accordingly find he has been guilty of gross misconduct.”

Mr Gray and the trustees of Braid Group had brought an action under company law claiming the affairs of BGHL had been carried out in a way that was prejudicial to the interests of some of its members.

Lord Tyre rejected five of the contentions advanced, including the conduct of investigations into the bribery and disciplinary proceedings that were brought against Mr Gray.