A number of motions dealing with preparations for a legal action alleging fraud by the directors of MMI Stockbrokers Ltd (in liquidation) were adjourned at the High Court yesterday. The motions were adjourned pending the outcome of the application by the official liquidator for directions regarding the future of the action.

Liquidator Mr Tom Kavanagh applied to the High Court on Wednesday for direction regarding whether the action - listed for March 21st next - should proceed.

Mr Kavanagh alleged there had been a change of attitude by a Jersey-based company, Cater Allen Nominees Ltd, regarding the alleged unauthorised debiting of amounts of more than £1.9 million (€2.41 million) from its account and the alleged crediting of those monies to the benefit of two directors of MMI - Mr Oisin Fanning and Mr John Curran - and more than 20 others associated with them.

In light of the alleged change of attitude, which was denied by solicitors for Cater Allen, Mr Kavanagh said his proceedings against the seven MMI directors would now be "extremely difficult to maintain".

The liquidator's application was adjourned to Monday next after Ms Justice Laffoy sought information on a number of matters. In addition, Mr Bill Shipsey SC, for the liquidator, said he wished to consider matters raised by London-based stockbroker, Prudential Bache, which acted as the agent for MMI in US securities and claims to be owed £320,000.

Yesterday, Mr John Gleeson, for the liquidator, asked Mr Justice O'Sullivan to adjourn a number of motions - which deal with discovery and other matters in preparation for the action against the directors - until Ms Justice Laffoy has given her decision on the application for direction.

Because of the seriousness of recent developments and because the application for direction remained undecided, he was unable to tell the defendants what the liquidator's position was regarding the case, counsel said. He hoped to be able to do so shortly after Monday next.

Mr Brian O'Moore SC, for MMI directors Mr Paul Boucher, Mr John Curran and Mr Peter O'Byrne, said he had a motion challenging the liquidator's motion for discovery.

If the proceedings were not discontinued, his complaints about that motion must be addressed.

If the action against his clients was amended, counsel suggested it would be "like a Frankenstein with the heart taken out and replaced with another component". If the proceedings were discontinued, he was anxious that the "complete vindication" of his clients should be done sooner rather than later.

Mr Mark Sanfey, for MMI director Mr Oisin Fanning, said any slippage of the case affected his client. Mr Fanning had been excluded from this week's hearing of the liquidator's application for direction and there had been extensive publicity regarding that.

This made it all the more important that the other matters regarding the action be heard.

Lawyers for the remaining MMI directors - Mr Colm O'Reilly, Mr Tim Murphy and Mr Cian Kealy - endorsed Mr O'Moore's submissions.