Challenge to O’Reilly pay ‘unfounded’

A legal challenge to a €1.87m payment to former Independent News & Media chief executive Gavin O’Reilly on his departure two weeks ago is “unfounded”, lawyers for the company told the Commercial Court yesterday.

The full challenge will begin in the Commercial Court on Jun 6.

Paul Connolly, one of two directors on the INM board representing the company’s biggest shareholder Denis O’Brien, is seeking declarations the €1.87m payment is unlawful on grounds it allegedly breached Section 186 of the Companies Act because it was approved by the board and paid the same day, without being put before shareholders at a general meeting.