The recent sale of £23 million (€29.2 million) worth of shares by the former director of Kingspan Mr Brendan Murtagh in April was a private matter for him, the executive chairman of the Cavan-based building products company, Mr Eugene Murtagh, said yesterday. He was speaking following yesterday's annual general meeting, at which the high number of share sales by directors during the year was raised.

Mr Brendan Murtagh resigned as a board member following share dealings by associates of his in a targeted takeover company, Hewetson.

He was continuing his work with the company in an executive capacity and was doing a good job, Mr Eugene Murtagh, his brother said.

"As far as I am concerned, the business is run properly and shareholders, institutional or private, can feel very secure in the way the business is managed," he said.

During the meeting, shareholders raised the issue of the company's share price, which has suffered in recent months. Mr Murtagh said he would like an explanation from the institutions who bought and sold shares. "We think they are very undervalued," he said.

Mr Murtagh was also asked about the sale of over 21 million shares by directors during the year. The shares realised £49.8 million, of which £30.8 million went to Mr Brendan Murtagh - including the £23 million of shares sold recently and others sold earlier. "Was there something in the wind that you know and the shareholders do not know?" one shareholder asked.

Mr Eugene Murtagh said nothing had changed in the business. It had performed well during the year and the fundamentals were the same, but second-liners had gone out of favour and the share price had come down. "I certainly cannot crystal ball gaze," he said.

The board's structure of having an executive chairman instead of a chairman and a chief executive was also questioned. One shareholder said it was common practice for publicly-quoted companies to separate the roles of chief executive and chairman and asked the board's view on the matter. Mr Murtagh said it had not been an issue for shareholders to date and if anybody had felt a bad job was being done, he would have considered it before now.

The company's objective to bring its dividend yield and cover - amounting to 1.35p per share, which is covered 12.7 times - closer to the industry average was welcomed.