Payzone execs secure injunction against ousting
17 January 2008 | 4720 views | 0
Irish e-payments firm Payzone has suspended trading in its shares a day after its CEO John Nagle and CFO John Williamson successfully fought off efforts to oust them.
The move comes just six weeks after Payzone - which was created by the merger of Ireland's Alphyra and British ATM operator Cardpoint - was listed on the London AIM market in December.
Yesterday Nagle and Williamson secured an interim injunction at a high court hearing in Dublin against their dismissal by Payzone and reinstating them in their positions.
Payzone had earlier released a statement saying Nagle and Williamson - both previously with Alphyra - "have left the company" and that chairman Bob Thian, formally boss of Cardpoint, is assuming "executive responsibility".
The statement also says that Balderton Capital, Payzone's largest shareholder which holds a 40.5% stake in the company, supports the decision.
But according to Irish press reports, Nagle and Williamson won the injunction against Payzone after presenting the Dublin court with documents stating that the move to oust them by the rest of the Payzone board had not followed proper processes.
The two men also argued that the board meeting had not taken place in Ireland - where Payzone is registered - and was therefore not valid.
The injunction is thought to prevent Payzone from dismissing Nagle and Williamson and removing them as directors.
A further court hearing is scheduled for this morning. In a new statement released today, Payzone says it has suspended trading pending the outcome of that hearing.