A Minority shareholder in Esat Digifone will no longer be able to exercise voting rights at meetings of the Esat board following a High Court decision yesterday.
Telenor Invest AS, a Norwegian communications company with a 49.5 per cent stake in Esat Digifone, secured an injunction preventing IIU Nominees, which has only a 1 per cent holding in the company but two directors on the board, from voting at future board meetings.
The interlocutory order allows either of the directors of IIU nominees - but not both - to attend Esat board meetings.
The order will continue until the dispute between the parties over board representation is determined at arbitration.
Under the terms of the order, either of the two IIU directors, Mr Dermot Desmond or Mr Michael Walsh (or any appointed alternative) will be entitled to receive notice of all future Esat board meetings and relevant documentation but will not be permitted to vote.
A meeting of the board is scheduled for today.
Telenor had argued that under the shareholders' agreement, any party whose stake in Digifone dropped below 10 per cent lost the right to nominate a director and also the right to maintain its nominee on the board.
