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 Probably the most famous family of cymbal makers in the world, Zildjian, is fighting a legal battle over the alleged mismanagement of company funds. Bill Zildjian, shareholder and former director of Sabian Ltd., is suing his parents, Robert and Willi, and his sister and brother, Sally Anne Teague and Armand Alexander (Andy) Zildjian.
Dispute over company funds and management
In his notice of action Bill Zildjian alleges his 81-year-old father is misusing company funds for personal expenses and that his brother Andy is actively undermining his position and influence on the business.
None of Bill Zildjian's claims have been proven in court. In a statement of defence filed in a Fredericton court, the defendants deny the allegations.
Court documents allege Robert Zildjian has manipulated and structured the cymbal business "so as to maintain absolute control." Bill states his father has appointed Andy as the president despite the fact that a company president must be elected by the board of directors.
He maintains that his father has told him on many occasions that the business was his birthright and, that following his death, the three siblings would own and control Sabian together:
"It was also understood from the early days of the Sabian business ... that (Robert's children) were entitled to participate actively in the business as shareholders, directors, officers and employees if they chose. Further, it was always understood that they would share equally in the profits of the business." This hasn't come to pass, he alleges, and Bill can't sell his shares and extricate himself from the company without his father's consent. Documents filed with the Court of Queen's Bench in Fredericton state: "Bill has justifiably lost the trust and confidence in his father Robert and his brother Andy on which their business relationship has been premised. Bill has no way to exit on fair terms from this situation without the assistance of the Court. Some form of corporate divorce is the only practical solution." Bill said his father has "directed and attempted to control the business and affairs of Sabian Canada (...) with little or no regard for corporate formalities, procedures or requirements." He names Robert's 2006 appointment of Andy Zildjian as company president as an example of breaching of the company's bylaws.
Bill also alleges Robert paid some $4.5 million in royalties to a Bermuda firm he set up and then in turn used at least some of that money to cover his and his wife's personal expenses and to maintain their lifestyle.
Improper behavior
Furthermore, Bill contends in an amended statement of claim that following the filing of the lawsuit, his use of a company cellphone, e-mail and credit cards were terminated and that someone interfered with the call-forwarding on his office phone. The suit also claims that at a directors' meeting in February 2008, the family members removed Bill as a director and then he was physically escorted from the meeting room.
In their statement of defence, Sabian Ltd. and Sabian Inc. deny that his removal was improper.
Bill is asking the court to force the company and his family to pay him dividends for his shares equal to those paid to other shareholders from 2002 to 2005, plus interest. He also requests that an independent party determine the fair value of his interest in Sabian Canada and affiliated corporate entities so the defendants can buy him out.
They also deny that anyone interfered with services in the wake of the lawsuit being filed in court.
Zildjian, Sabian and family feuds
After a family legal battle in 1981, Robert Zildjian split from the centuries-old, Boston-based firm of his father Avedis Zildjian III, the head of the Avedis Zildjian Company. Robert set up a new company in Meductic, New Brunswick. Robert named the company after his three children: Sally (SA), Bill (BI) and Andy (AN). Sabian quickly rose to prominence as one of the most highly regarded cymbal makers in the world.
Since then the company's brass alloy cymbals have become among the most widely used globally: Sabian manufactures more than 900,000 cymbals annually for many of the world's most prominent drummers. Among Sabian's clients are Phil Collins, Jack DeJohnette, Mike Portnoy, Dave Weckl and Neil Peart, as well as percussion greats Evelyn Glennie, Bob Becker, Ney Rosauro, Dennis DeLucia and Ralph Peterson,
The Zildjian family has been making cymbals since the 17th century.
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