A PETITION for the appointment of an examiner to Phoenix Shannon plc was dismissed by the President of the High Court, Mr Justice Costello, yesterday.

The petition had been presented on May 2nd on behalf of a number of persons who purported to form the board of directors. However, earlier this week, Mr Justice Costello in a judgment concerning a dispute over who comprised the board, decided that members coopted in 1996 comprised the board of the company. These 1996 members were not those who presented the petition.

Mr Bill Shipsey SC, for the petitioners, had said at a previous court hearing that if the judgment went against his clients, they would not have the authority to present the petition for an examiner. A receiver was appointed to the company on April 30th.

In his judgment last Wednesday, the judge said the action arose from a serious dispute between directors.

The company, based at Shannon Industrial Estate, manufactured and distributed dental products. In March 1996, Mr George Wolfe, president of Nen Dental Inc, a US wholly owned subsidiary of Phoenix, was coopted to the board.

Later, in October, 1996, Mr Harold Purkey, Mr Keith Hartley, Mr Philip Platek, Mr Nico Pronk and Mr Benjamin Swirsky were coopted as directors.

They were nominated by the company's merchant bankers, Noble Investment Bankers and a US corporation, Forum Capital Markets, which had been instrumental in raising 520 million (£13 million) by way of a bond for the company. The company was then in serious financial difficulties.

At the time of the second cooption, the existing directors resigned except for Mr Ola Johansson, Mr Brian Boland and Mr Keith Westrich. In December 1996, Mr Westrich resigned.

Mr Justice Costello, giving judgment during the week, said the action arose from disputes between the six directors coopted in 1966 and the three other directors.

Phoenix Shannon plc, Mr Johansson and Mr Westrich took the action against the coopted directors.