The board of the Dublin Simon Community is understood to be preparing to resign following a vote of no confidence during an extraordinary general meeting in the early hours of yesterday morning.
The organisation, which receives annual State funding of around €3 million, has been riven with internal difficulties following a decision by the board to dismiss its former chief executive, Mr Greg Maxwell, last August.
Entirely separately, it has also emerged that the organisation is facing a Circuit Court action taken by a former member of management who alleges she was sexually harassed by a different senior employee.
A spokesman for the Dublin Simon Community said the organisation would "vigorously defend" the allegation which was filed in the courts within the last two weeks.
More than 200 Dublin Simon staff, volunteers and homeless people who use the service attended an extraordinary general meeting in the Royal Dublin Hotel.
Four former chairpersons of the board, all now no longer members of the board, brought a motion calling for a vote of no-confidence in the current five-member board over Mr Maxwell's sacking and "subsequent developments".
The four also gathered a petition of 49 names in support of Mr Maxwell.
Following a heated debate lasting several hours, in which Mr Maxwell made an address from the floor, the no confidence motion was passed by 114 votes to 83.
Mr Maxwell will seek reinstatement as chief executive of the voluntary organisation at a hearing before the Employment Appeals Tribunal next month.
The current board, meanwhile, is due to meet early next week and is set to resign following the vote.
The interim chief executive, Mr Sam McGuinness, former chief executive of Storm Technology, is also expected to resign.
In a further development, The Irish Times understands at least 14 of the organisation's managers wrote to the board in recent weeks opposing the return of Mr Maxwell.
The Dublin Simon Community yesterday insisted its services for the homeless would remain unaffected by difficulties in the organisation.