O’Reilly paid €1.87m in ‘indecent haste’

A payment of €1.87m made with “indecent haste” to former Irish News & Media chief executive Gavin O’Reilly on his stepping down last week was unlawful and also unjustified where he presided over “a period of destruction” of the company’s share value, a non-executive director of the company has alleged.

Paul Connolly, one of two directors on the INM board representing the company’s biggest shareholder Denis O’Brien, has brought High Court proceedings seeking declarations the payment breached Section 186 of the Companies Act as it was approved by the board without being put before the company’s shareholders at a general meeting.

Rossa Fanning, counsel for Mr Connolly, secured permission from Mr Justice Peter Kelly yesterday to apply next Monday to have the proceedings, which are against INM only, fast-tracked in the Commercial Court.