The High Court has reserved judgment on an action to restrain a minority shareholder from participating in the management of Esat Digifone.

Mr Justice O'Sullivan is expected to deliver his decision later this week.

Telenor Invest AS of Oslo, which has a 49.5 per cent stake in Esat Digifone, is objecting to a company which has a 1 per cent stake continuing to have two directors on the Esat board.

Telenor wants orders restraining Mr Dermot Desmond and Mr Michael Walsh, directors of IIU Nominees Limited, from attending Digifone's board meetings or participating in the management of the company.

IIU has counter-claimed and is seeking an order staying the Telenor proceedings.

The remaining 49.5 per cent stake in Digifone is owned by Esat Telecom which, with IIU Nominees, are defendants in the action.

IIU once held a 20 per cent stake in Digifone and, although this is now down to 1 per cent, it insists it is entitled to have two members on the board.