PAYZONE CHIEF John Nagle and finance director John Williamson are likely to be deposed from the board of the electronic payments and cash machine company when shareholders gather in Dublin today for an egm.
The meeting, which comes after two months of acrimony and legal dispute at the company, is likely to hear that a motion from a number of shareholders to remove Mr Nagle and Mr Williamson from their posts was supported by a majority of investors.
Sources close to the two men acknowledged last night the strong likelihood of their departure from the board on foot of successful resolutions from five of the company's shareholders.
It is understood that a counter-motion from Mr Nagle, seeking the removal of company chairman Bob Thian, was defeated in a vote of shareholders.
The meeting today is unlikely to be the end of the matter as Mr Nagle has issued legal proceedings against each of the firm's other directors in a personal capacity for damage to his reputation.
Ms Justice Maureen Clark ruled in the High Court last month that Payzone's defence to the claims of unlawful termination of contract was "devoid of merit" and said Mr Nagle and Mr Williamson were deprived of constitutional justice and fair procedures.
However, she said Payzone could still embark on a process that conforms with their contracts and its articles of association.
Mr Nagle's action is likely to be strongly resisted by Payzone's directors.
Payzone was formed in December when Mr Nagle's privately held electronic payments company, Alphyra, merged with cash machine firm Cardpoint, then listed on the Alternative Investment Market (Aim) in London and chaired by Mr Thian.
Relations soured after the cancellation of a €150-million share sale and a 33 per cent drop in the value of Aim-listed shares in the newly merged organisation.
This culminated in an effort by Mr Thian, who became Payzone chairman after the merger, and the rest of the Payzone board to dismiss Mr Nagle and Mr Williamson in January.
The company's shares were then suspended by Aim, pending the outcome of High Court proceedings initiated by the two men. While they received a reprieve when the court ruled that Payzone did not follow proper procedures, it appeared late yesterday that their time on the board will come to an end today.
Payzone's shares are likely to be relisted today after the company issues a trading update. That update is likely to say the cash machine operations formerly run by Cardpoint performed badly during the Christmas season.
The level at which the shares will be priced is not known.
Having listed at 76p in December, the stock was suspended on January 17th at 47.75p. Investors including Payzone's largest shareholder, Balderton Capital, agreed last month to provide the company with €8 million in new funding.
