Gogarty says he was told he should refuse to sign resignation papers

Mr Liam Conroy, chief executive of the Murphy group in 1988, asked Mr James Gogarty to resign, but Mr Joe Murphy snr told him…

Mr Liam Conroy, chief executive of the Murphy group in 1988, asked Mr James Gogarty to resign, but Mr Joe Murphy snr told him to hold on, as he was getting his forces organised, the tribunal heard.

Mr Gogarty said that before an extraordinary shareholders' meeting on June 8th, 1988, called by Mr Conroy's management for the purpose of forcing him out, Mr Murphy called a separate meeting at 6 a.m., where it was announced that replacement directors were to be appointed, as Mr Conroy and his directors had resigned a month previously.

Mr Gogarty said that earlier in 1988 he got a phone call from Mr Murphy, who said there was a problem and that he would have to ask him (Mr Gogarty) to resign his directorships. He said Mr Murphy had told him he would look after him, but that he would have to consider his resignation. Mr Gogarty asked for a reason and what he had done wrong.

"He surprised me because he says `Jim, I am here with my back to the wall, my hands over my head and a gun to my head'. And I said to him `Well', I says, `If that's the case, you are not a free agent and you have no control over this and I am not going to resign'," Mr Gogarty said.

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Mr Murphy said he would have to take it up with Mr Conroy. A meeting was arranged. He met Mr Conroy, who gave him 12 to 14 resignation documents from the companies and wanted him to sign them. When he asked why he should, Mr Conroy said that if he did not Mr Marcus Sweeney and Mr Gerry Downes had indicated that they would not work the following Monday.

After the meeting Mr Gogarty rang Mr Murphy to tell him what had happened. Mr Murphy said to keep it up, not to sign anything, as he was getting his forces organised. Mr Murphy said to delay and when he got his companies back he would look after him and give him a better offer.

A few days later he collected a letter from Mr Conroy which contained an offer. He rang Mr Murphy, who said to reject it. He received another offer later, which he also rejected.

"As a result of rejecting Mr Conroy's offer, they seemingly decided they would force me to resign by calling an extraordinary shareholders' meeting on June 8th, 1988", Mr Gogarty said. The purpose was to remove him as a director of all the companies. This meeting was to take place at 10 a.m.

Mr Murphy rang him to tell him there would be a meeting at his house on June 8th at 6 a.m. They wanted to appoint replacement directors, as Mr Conroy and his directors had resigned a month previously.

At this point Mr Gogarty said he was "getting a bit worked up" and the chairman of the tribunal said he would take a break.