The High Court has refused to block consideration at the a.g.m. tomorrow of a resolution granting share options to Eircom directors. Dr Michael Grimes of Tramore Road, Cork, an Eircom shareholder, had petitioned the court for an interim injunction staying consideration and voting on the resolution.

Mr Justice Butler was not prepared in Eircom's absence to grant the relief sought. "If this petition proceeds and if the specific resolution referred to is ultimately found to be unlawful I am not at all convinced that the money involved could not be recovered," the judge said.

Dr Grimes told the court the resolution, if passed, would allow the directors to loot the company by allocating as many shares as they wished at whatever price they wished to themselves. He said that as the share price had dived because of appalling mismanagement the directors, in acts of breathtaking arrogance, had voted themselves vast sums.

"Public limited company directors are there to protect the shareholder and not to enrich themselves. The proposals adopted in this share option resolution constitutes plain theft of the company's funds," he said.

Following the High Court decision Dr Grimes said he would proceed with his petition challenging the legality of any such payouts.