Mr Philip Byrne resigned as managing director of Dunloe Ewart on December 31st, 2001, following a strategic review in which he played a leading role.

Mr Byrne's resignation was one of the recommendations to emerge from the review, the Dunloe chairman, Mr Noel Smyth, said yesterday. It had nothing to do with the insider dealing allegations Mr Byrne was then facing.

The review concluded that Dunloe - because it was not in "expansionist mode" - could no longer afford its overheads. A number of staff were let go.

The company bought out the contracts of Mr Byrne and Northern Ireland director Mr Barry Gilligan. "They were too expensive," said Mr Smyth.

The insider dealing trial heard that Mr Smyth and Mr Byrne had known each other socially for many years and played golf together. In late 1996, Mr Smyth suggested to Mr Byrne that he join his, Mr Smyth's, property company, Aviette Ltd.

It was envisaged that Aviette would merge with two other property companies, and the new entity be absorbed by Dunloe. Mr Byrne would then join Dunloe. Mr Byrne thought about the offer before accepting it. At the time he was an executive with Green Isle Foods.

Mr Byrne officially joined the board of Aviette on May 1st, 1997, though he attended meetings involving Aviette in April 1997. The trial heard that around the same time, he discussed his share portfolio with Mr Dermot Walsh, of Davy Stockbrokers.

Mr Byrne's portfolio was worth €2.28 million (£1.8 million). Mr Walsh advised Mr Byrne that he was over-exposed in Dunloe shares, shares he had bought two years earlier for 12.7 cents but which were by then worth 43 cents.

A few days later Mr Byrne gave the instruction that one-third of his Dunloe shares should be sold.