Permanent TSB's case to prevent director taking action adjourned

A director of Permanent TSB has described as “an egregious breach of court process” a bid by the bank and 10 of its directors or former directors to prevent any legal action by him or others aimed at disqualifying any of the 10 from involvement in the management of a company.

Piotr Skoczylas told the president of the High Court, Mr Justice Nicholas Kearns, that the proceedings against him and others, including some shareholders of Permanent TSB, should be “flung out” with an order for costs against the bank and other plaintiffs.

Interim order

Last Friday, Permanent TSB and 10 of its directors or former directors secured an interim order restraining Mr Skoczylas, Scotchstone Capital Fund and six others taking any legal proceedings aimed at disqualifying any of the 10 under section 160 of the Companies Act.

Mr Justice Kearns returned the interim order to yesterday, when Mr Skoczylas said his side had prepared affidavits replying to the application and was ready for the case to go on.

Paul Gallagher SC, for Permanent TSB and the 10, said he wanted an opportunity to reply to the affidavits.

Mr Skoczylas argued the other side was seeking to encroach on his side’s fundamental constitutional rights and there was clear case law indicating the application could not stand.

Mr Justice Kearns said he had to grant an adjournment to allow for a reply to the affidavits prepared by Mr Skoczylas’s side.

He made directions for exchange of affidavits and returned the matter to Monday.

Mr Skoczylas was appointed to the Permanent TSB board directly by shareholders at an extraordinary general meeting on July 22nd, 2011. He is managing director and fund manager at Scotchstone Capital Fund Ltd.

Last Friday’s interim order was made against him, Scotchstone and six named individuals – Gerard Dowling, Padraig McManus, Georg Haug, John Paul McGann, Tibnor Neugebauer and Muriel Scorer. Some are shareholders of Irish Life Permanent.

The interim order was sought on behalf of Permanent TSB, its chief executive Jeremy Masding and several directors and former directors – Kevin Murphy, David McCarthy, Bernard Collins, Ray MacSharry, Margaret Hayes, Emer Daly, Sandy Kinney and Pat Ryan.

They claim any issuing by Mr Skoczylas of proceedings under section 160 is an abuse of process and part of an ongoing campaign against the recapitalisation of Irish Life Permanent.

Restructuring plan

The matters complained of by Mr Skoczylas were not disqualification matters but were designed to put pressure on in relation to other proceedings involving the defendants, and to interfere with the restructuring plan for ILP, they claim.

Mr Skoczylas claims the defendants have not yet completely formulated or launched the intended action complained of and not all of the defendants have yet decided to launch it.