A BITTER dispute between some directors and shareholders of the giant Kentech group is to go to mediation, the Commercial Court heard yesterday.
Kentech employs 2,800 people here and worldwide in providing engineering and other services.
Mr Justice Peter Kelly, who earlier this month suggested the sides consider mediation rather than “a battle royal” in court, was told yesterday they had agreed to attempt to mediate their differences.
The judge welcomed that decision and granted an application by the sides to adjourn the proceedings to July.
John Murphy, a director with a shareholding of more than 20 per cent, has brought proceedings against four other directors – Michael Francis Kent, founder of the company; Sarah Kent, chief executive officer since 2008; John Kent and John Gilley.
Mr Murphy has brought a petition under section 205 of the Companies Act alleging the affairs of Josar Holdings Ltd – the holding company in the Kentech group with registered offices at Little Island, Co Cork – and the powers of some directors are being conducted in an unfair, oppressive and unlawful manner.
He claims his employment with the company was terminated last March in breach of a shareholders’ agreement.
Mr Murphy claimed Sarah Kent conceived the termination of his employment last March as a “coercive negotiating tactic” aimed at achieving the “greater end” of his elimination as a shareholder and to prevail upon him to sell his shares at an undervalue.
Sarah Kent denied the claims. While accepting the Marlfield property development project of John Kent and Michael Francis Kent failed in 2008 with a significant sum owed to Bank of Ireland, that debt was “entirely unrelated” to the company, she said.
