Elan boardroom dispute 'unseemly'

A BOARDROOM row over corporate governance has been described in the High Court as “a most unseemly dispute”.

Jack Schuler and Vaughn Bryson, directors of biotech group Elan, were responding yesterday to an injunction taken last week by the company to forestall a US legal action by the two directors against the company.

Their counsel, Rossa Fanning, told Mr Justice John Edwards there was no objection to the injunction remaining in place until October 5th. Declan McGrath, for Elan, said his clients had no objection to the adjournment as long as all injunctions remained in place.

“It is a most unseemly dispute,” Mr Fanning told the judge, one that was better kept out of court.

Elan’s board is due to meet in Dublin tomorrow to study a report into allegations by Mr Schuler and Mr Bryson of breaches of corporate governance by Elan in a number of transactions conducted over the past year.

The report has been drawn up by legal firm McKenna Long and Aldridge, which has worked with Elan previously on a separate review of corporate governance.

Elan obtained the injunction against Mr Schuler and Mr Bryson when it learned that they had planned to take court proceedings in the US with regard to the same matters being addressed by the McKenna Long inquiry.