Baltimore Technologies has established a system to allow its 40,000 small shareholders to sell their shares in the firm at minimal cost.

The company said yesterday that all those who hold fewer than 500 shares would now be able to sell them at a cost of 1p sterling per share.

The development is likely to be welcomed by Baltimore's 6,000 Irish shareholders, many of whom control blocks of shares so small that normal dealing costs would eradicate any benefit they would get from selling.

Large numbers of shareholders in the former FTSE 100 company lost money on their holdings when Baltimore's value plummeted from several billion pounds at the height of the dotcom boom to less than £40 million (€58 million) in the middle of last year.

The company sold its last remaining business in November.

Baltimore executive chairman, Mr Bijan Khezri, yesterday told shareholders that the company's board would decide before the end of March on whether to liquidate the firm, which is essentially a cash shell, or pursue an acquisition.

If the firm is liquidated, its cash holding of some £20 million will be returned to shareholders.

Mr Khezri said the board was "making progress" on the matter. He said the directors should be able to make a recommendation to shareholders before the full-year results are released.