Shares in electronic payments group Payzone were suspended in London yesterday until High Court proceedings involving the company and its chief executive John Nagle and chief financial officer John Williamson have concluded.
It was claimed in the High Court yesterday that Payzone chairman Bob Thian and other non-executive directors of the company had engaged in a "conspiracy" to secure the removal of Mr Nagle and Mr Williamson.
The company said it would defend the case but needed until today to prepare its reply to the claims made.
Justice Mary Laffoy was asked to grant what is called a "Fennelly order", which would have resulted in the two executives continuing to be paid but only being allowed to carry out limited duties. This request was rejected.
Payzone was created on December 5th following the merger of Irish e-payments group Alphyra, which Mr Nagle founded, and UK ATM operator Cardpoint, which was led by Mr Thian.
On Wednesday, Payzone issued a statement to the stock exchange saying that Mr Nagle and Mr Williamson had left the company.
Later that day, the two executives secured court injunctions preventing Payzone from removing them from their positions.
This order was continued until today, when the court proceedings are due to resume.
While he had not, to date, been physically excluded from the company's premises, Mr Nagle said he feared an effort would be made to do so unless the defendant was restrained by the court.
It is understood that Mr Nagle spent time at Payzone's head office in Sandyford yesterday.
In an affidavit, Mr Nagle claimed that Mr Thian was pursuing "a personal agenda" to deflect attention from the underperformance of Cardpoint and to "transfer blame" to Mr Williamson and Mr Nagle.
Sources close to Mr Thian maintained that the decision to remove Mr Nagle and Mr Williamson was unanimously supported by other board members and directors and by the majority shareholder, Balderton Capital.
Balderton owns 40.5 per cent of Payzone's shares and on Wednesday agreed not to sell the stock into the market for at least six months.
Both executives are seeking orders for damages for alleged conspiracy by Mr Thian and other non-executive directors of Payzone, most of whom are non-executive UK directors nominated by Cardpoint.
Mr Nagle said the members of the board had acted in flagrant contravention of the constitutional documents of the company and his contract, and with "utter disregard" for his reputation.
Mr Nagle said he "utterly rejected" that the company has any "real or serious" concerns about his management of Payzone's affairs. Paul Gardiner SC, who is representing the two executives, said the company had breached the men's contracts.
He also argued that the board meeting at which they were dismissed was not properly convened.
