A financial services company, which was ordered last month not to take any steps to terminate the employment of one of its advisors and shareholders, is seeking to be wound up, the High Court heard.
Mentor Financial Services was set up in 2002 by Michael Hoare (62), and within weeks of signing an expansion and shareholders agreement with five others earlier this year, the company sought to make his position untenable, it has been claimed.
As a result, Mr Hoare got an interim injunction last month restraining the firm and other shareholders from taking steps to terminate his employment or in relation to his shares.
The injunctions were against the company and the other shareholders - Elizabeth Lavin, Darren Nolan, John Flynn, Daniel McKeown, and Adam Penrose and required the defendants to continue to pay Mr Hoare's salary pending resolution of the dispute or further order of the court.
The defendants were also restrained, pending further order, from taking any actions in relation to Mr Hoare's one-sixth share of the firm and from communicating to third parties to the effect that he has ceased employment with Mentor.
On Tuesday, Bernard Dunleavy, Defence Barrister, for Mr Hoare, told the court that mediation to settle the dispute was scheduled for last week, but shortly before it was due to take place, his side received correspondence to say the company was insolvent and would be holding an EGM to have it wound up. As a result, the mediation did not go ahead.
Counsel said in the meantime, the defendants wrote to the court outlining the insolvency.
Mr Justice Brian Cregan, who was handed a copy of the letter, said he would not read it as it was "somewhat improper," especially as the defendants had legal representation.
Mr Dunleavy said not all of the court's order had been complied with, and he was seeking an early hearing of his application to turn the injunction from interim to interlocutory, which means it remains in place until the entire matter is resolved.
His client needed an order to allow him to access information on the company system, particularly as he would now need to get back on his feet if the firm is going to be wound up.
The judge said he was prepared to hear it this Thursday as it was an urgent matter. He also said based on what counsel had told him, it appeared that this was a case of "the cuckoo plundering the nest" once the new shareholders' agreement had been signed.
He said he wanted an affidavit from the defendants explaining why they had chosen to go into liquidation. He also said Mr Dunleavy could bring applications for the attachment and committal to prison of the other shareholders for alleged breach of his previous orders.
Neil Rafter, for the defendants, said he had only just come into the case after his clients' previous solicitors no longer acted for them. He was seeking time to deal with the matter.
However, he said that he hoped the matter could be resolved in advance of Thursday.
