A COMPANY director yesterday began a High Court action in which he is seeking a declaration that he is entitled to a 15 per cent shareholding in the Monarch property group.
Mr Edward Sweeney (51) of Alma Road, Monkstown, Co Dublin, who has taken the action, was appointed development director of the Monarch Group in the early 1980s.
Mr Bill Shipsey SC, for Mr Sweeney a chartered quantity surveyor, told the court that his client was claiming that he was entitled to the shareholding on foot of an agreement concluded in July 1986 during a meeting of the group's directors.
Mr Sweeney's claim is denied by the Monarch Group which claims that it had never represented to him when he took employment with the group that he would be given a shareholding at some future date.
In 1974, Mr Sweeney claimed he was approached by Mr Dominick Glennane, the group's financial director, and asked on behalf of the Monarch Group to take up employment with one of its subsidiaries - Dundalk Shopping Centre Limited.
Mr Sweeney alleged that during the course of protracted negotiations it was represented to him that he would be given a share-holding in the Monarch Group at some future date. It was anticipated, however, that the share-holding would be somewhere between 10 per cent and 25 per cent of the issued share capital.
Mr Sweeney claims that in recognition of the work done by him on behalf of the Monarch Group over the preceding 12 years, it was agreed at a meeting held on or about July 24th, 1986, attended by Mr Monahan, Mr Glennane and Mr Sean Mooney of Stokes Kennedy Crowley, the group's auditors and accountants, that he would be given an ex gratia payment of £100,000 of which £50,000 would be paid in cash.
The balance would be used in the purchase by him from Mr Monahan shares equivalent to 15 per cent of issued share capital.
The group claims, however, that the proposal was never finalised. Mr Sweeney never received £50,000 and Mr Monahan never agreed to dispose of any portion of his shareholding.