THE DISSIDENT shareholder elected to the board of Irish Life and Permanent has said he will challenge any court action by Minister for Finance Michael Noonan to force the company to accept cash from the Government.

Piotr Skoczylas, managing director of Maltese investment firm Scotchstone Capital, said he was confident his challenge would be successful and he called for shareholders to support him.

Mr Skoczylas has led a high-profile campaign to stop the recapitalisation of the company that will leave the State with a stake of more than 99 per cent, wiping out the interests of shareholders.

The Minister has the power to take over the company under the Credit Institutions (Stabilisation) Act. He must meet a July 31st deadline set under terms of the EU-IMF bailout to recapitalise the company.

“I am 100 per cent confident that we will be able to challenge it,” said Mr Skoczylas, who is both a Polish citizen and a British subject. “The Credit Institutions (Stabilisation) Act has not been fully challenged in court and this will probably be the first time that it is challenged both on constitutional grounds and other legal grounds.”

An Irish law firm, which he would not name, would represent shareholders on a “no win/no fee basis” in fighting a legal challenge of the Minister, he said.

“We have full confidence in our case – righteousness is on our side,” he said. “The Government is treading all over our rights, all over the Irish Constitution and we will fight it.”

A former investment banker at Morgan Stanley and Credit Suisse, Mr Skoczylas (40) has business and economics degrees from London Business School and the University of Lodz in Poland.

Scotchstone started investing in Irish Life and Permanent last autumn. He declined to say how many shares the firm held.

Mr Skoczylas’ appointment to the board must be approved by the Central Bank. He said he would forego his director’s fees.