THE MINISTER for Finance has urged the High Court to halt a number of legal challenges to the Government’s recapitalisation of Irish Life and Permanent (ILP) on grounds those taking the actions lack the necessary legal standing to do so.

The application, on behalf of Minister for Finance Michael Noonan, is one of a number of key preliminary issues being decided by Mr Justice Kevin Feeney in the actions.

Piotr Skoczylas and his Maltese-registered company Scotchstone Capital are among a number of litigants challenging the July 2011 recapitalisation on grounds including it unlawfully imposes an unacceptable €2.7 billion burden on Irish and other EU taxpayers and hinders the free movement of capital.

Two ILP shareholders, Gerard Dowling and Pádraig McManus, previously told the court they are supporting Mr Skoczylas while in separate proceedings, the Curacao-based investment fund – Horizon Growth NV – is also challenging the recapitalisation. Yesterday, the judge began hearing a motion by the Minister to set aside the claims by Horizon and Mr Skocyzlas’. The Minister claims neither was a member of ILP when the recapitalisation order was made and they lack the required legal standing to bring the proceedings.

David Barniville SC, for the Minister, said neither Horizon, which purchased six million shares in ILP Group Holdings between February and July 2011, nor Mr Skoczylas — whose company bought €200,000 worth of shares, appeared on the bank’s register of members in August 2011 when they brought their challenges.

At the relevant time, the shares of Horizon and Mr Skoczylas shares were registered to other entities, who held the shares for the parties’ beneficial ownership, he said.

Section 31 of the 1963 Companies Act required the names of members to appear on the register of members of ILP Group Holdings, he argued. This was clearly not the case here and both challenges should be set aside.

Both Mr Skoczylas and Horizon tried to have their names included on the register after they brought their challenges, counsel added.

Mr Skoczylas and Horizon both reject the Minister’s claims and contend they are members of the company. They claim the manner in which they held the ILP Group Holdings shares represents a well established norm in international financial investment for many years. They also claim the Minister’s construction of membership is restrictive and he is seeking to circumscribe the rights of shareholders.

The hearing continues today.