Directors and shareholders of a Dublin-based English language school with 600 students has launched a High Court action aimed at preventing a fellow shareholder from taking money out of the company.
Barrister Ross Gorman said the action has been taken to protect the integrity of the company, Skills and Enterprise Development Academy Ltd, the school itself and students who have already paid for courses in the college.
The application has been brought by Tiago Mascarenhas, a director and shareholder, Saiful Islam, a shareholder, and Ian Fleming, a director, in respect of the company which operates the English Language College at 68-72 Capel Street, Dublin.
The action is against Mohammed Rezaul Karim, otherwise Rezaul Karim, and his wife, Mahbuba Sultana, who are based in the UK. The action is also against three other individuals John White, James Coyle and Mohammad Bhuiyan who have purportedly been appointed to the board of the company.
Mr Gorman, counsel for the plaintiffs, said they wanted to ensure that staff and host families for the students get paid and the college keeps its official Government-sanctioned accreditation.
Counsel said his clients have had ongoing difficulties with Mr Karim and his wife who, it is alleged, have “acted in breach of company law”. There was a dispute and difficulties over the ownership of shares in the company.
It was claimed that Mr Karim, who is involved in a number of English language schools in Ireland and the UK, had put the shares of the company in his wife’s name and had sought to extract money from the company which he regarded as a personal asset.
Mr Gorman said Mr Karim has said he is free to borrow money from the company and had threatened certain actions unless his demands were met, including appointing three new directors, transferring shares to other parties and issuing himself with a €100,000 loan from the company.
Counsel said that in recent months Mr Karim called a company EGM, which was fixed for the end of September. A second EGM had been called by Ms Sultana, which took place late last month, and at which a number of resolutions were passed and three new directors appointed.
The meeting and the resolutions, it was claimed, are invalid and also in breach of Irish company law. Mr Gorman said that as a result of the defendants alleged actions his clients sought various injunctions including one preventing Mr Karim and his wife from borrowing or taking money from the company until the action had been determined.
They also seek orders preventing the three people purportedly appointed to the board from holding themselves out as directors of the company.
The matter came before Mr Justice Michael Twomey on Thursday’s sitting of the High Court. The judge, on an ex parte basis, granted the applicants permission to serve short notice of the proceedings on the defendants.
The judge adjourned the matter to a date next week.