A High Court judge yesterday continued an order freezing almost 74 million ordinary shares held by two overseas companies in Bula Resources (Holdings) Plc. But the order could be lifted almost immediately if Bula is provided with information regarding the identity of the beneficial owner/s of the shares.

Mr Justice Kelly also ordered Mr Patrick Mahony, a director of Bula Resources, and Mr Ivan Walpole, Secretary to the Company, to furnish to a Government-appointed inspector, Mr Lyndon McCann, details of a meeting they had on November 24th last.

Mr Shane Murphy, for the inspector, told the court that both men were, on the advice of their solicitors, refusing to disclose details of the November 24th meeting. The refusal was on the basis that what was discussed was off the record, confidential and without prejudice.

It is alleged the November 24th meeting involved, on one side, Mr Craig Bond, an Australian who is said to be the beneficial owner of Mir Oil; his London-based solicitor, Mr Michael David Coleman; Ms Theresa Gavin, a Dublin solicitor acting for Mir Oil and, on the other side, Mr Mahony for Bula; the company's solicitor Mr Rod Ensor and other unspecified members of the Bula board. On October 23rd last, the Tanaiste, Ms Mary Harney, appointed Mr McCann, a barrister, to investigate the membership of Bula Resources. He was to decide who had been financially interested in the success or failure of that company, or who was able to control or materially influence company policy. In court yesterday, Mr Michael Collins SC, for Bula Resources (Holdings) Plc, said the identity of the beneficial owners of the Mir shares remained unclear. It was alleged the owner was Mr Craig Bond, son of the Australian businessman, Mr Alan Bond.

On September 12th last, Mr Justice O'Higgins imposed an order freezing 74 million shares until investigations establish the identity of their owner/s. Yesterday, Mr Collins said he wanted this order to remain in place.

The order was sought following government and Irish Stock Exchange concerns about the sale of just under 28 million shares in Bula Resources a year ago.

In previous hearings, it was said that Bula gave 101 million of its ordinary shares to a British Virgin Island company, Mir Oil Development Limited, in exchange for a 25 per cent holding in its sister firm, Mir Space International Limited.

Bula received a four year option to buy out the remaining 75 per cent of Mir Space which had a half share with a Russian company, KMG, in an oil field in Western Siberia.

Mr Jim Stanley, chairman and chief executive of Bula, brokered the deal with Mir Oil. He resigned last April after Bula experts reported the oil field production level might be significantly lower than previous analysis suggested.

Mr Stanley's resignation followed the sale by Mir Oil of 28 million shares held in Bula.

Yesterday Mr Collins said the Government-appointed inspector, Mr McCann, was also trying to discover the identity of the beneficial owner of the shares.

It was very significant that Mr Craig Bond had not chosen to swear an affidavit on which he could be cross-examined in court, counsel said.

Mr Martin Hayden, counsel for Mir Space and Chamonix Corporate Secretaries Limited, said he accepted they had not yet responded to Bula's requests for information on the beneficial ownership. Such information would be forthcoming but only on the basis of certain undertakings by Bula in regard to its dissemination, he said.

His application was to have Mr Justice O'Higgins' order, which froze the shares, discharged.

Mr Justice Kelly asked Mr Hayden where his entitlement to dictate such terms came. The judge said there were legal obligations on counsel's clients to furnish the information being sought by Bula. Bula was entitled to a full and true answer and it was not getting it, the judge added. He told Mr Hayden that his clients had not complied with the statutory requirements imposed upon them.

Mr Hayden said Mr Bond was now prepared to furnish the information to Bula, now that his name had been publicised in connection with the affair.

The judge said he would permit the September freezing order to remain in place because of the failure by Mr Hayden's clients to furnish a full and true answer.

Mr Hayden asked for an adjournment of the case for two weeks during which time the information being sought by Bula could be supplied.

But Mr Justice Kelly said he was not disposed to grant such an adjournment. However, if the information required was furnished, he would grant liberty to return to the court within 48 hours and apply to have the freezing order lifted. He awarded costs of yesterday's hearing, and the previous one, to Bula.

Mr Shane Murphy, for Inspector McCann, said he was applying to compel Mr Mahony and Mr Walpole cooperate with the inspector in detailing what took place at a meeting in Dublin on November 24th last.

In an affadavit, Inspector McCann said there was considerable unrest amongst Bula shareholders in relation to the activities of the companies in Russia.

It was vital for the conduct of his investigation that both men answer the questions he wished to put to them, he said. Both men were in possession of information which could be of central importance and relevance to his investigation, he believed.

Mr Collins, for Bula, said the company wanted to co-operate with the inspector but it was caught in the situation that a disclosure of information about the meeting could amount to a breach of trust and confidence.

Mr Justice Kelly said there was a world of a difference between a confidential meeting and one where there was legal or professional privilege.

The court was entitled to cut through the confidence as distinct from legal/professional privilege. If legal confidences were involved, then an entirely different set of circumstances would prevail.

In his view, both Mr Mahony and Mr Walpole should furnish Inspector McCann with details.