Jones Group shareholders have approved the proposal to sell the group's ships and manufacturing businesses, asset disposals which could result in a £12 million, 90-100p per share special payout to the group's 700 shareholders.

The go-ahead for the asset sale only came after some detailed questioning of chairman, Mr Eugene Greene, at an extraordinary general meeting in Dublin yesterday. But the final vote in favour of the resolution was carried in a show of hands of the 40 plus shareholders who attended.

Mr Greene told shareholders that he expects the disposal of the ships and the manufacturing businesses to be completed in the first half of the year. Agreement has already been reached to sell two of the group's bulk tankers for £20.6 million and the third tanker will also be sold and the shipping business wound up.

Discussions are also taking place with potential buyers of the manufacturing businesses, and it is understood that Jones's 21 per cent shareholder, Zehnder, is negotiating to buy the Runtalrad radiator business.

Mr Greene rejected a suggestion by one shareholders that the absence of a project in which to reinvest the surplus cash was an indictment of the Jones board and management.

He added that it possible that when the review of the distribution business is complete, Jones might decide to expand in that business through acquisition.

The board also came under fire from one shareholder for locking the group into a dollar exchange rate of $1.4570 for the dollar exposure created by the sale of two ships to Gearbulk for $30 million (£21.7 million). That forward exchange rate was fixed on December 19th, but since the pound has weakened and is currently trading at $1.3850.