Discussions are ongoing to try to resolve a dispute in which it has been alleged new shareholders in a financial services company tried to make the position of one of the firm’s founding shareholders untenable.In what has been described by a judge as an apparent “cuckoo plundering the nest” case, a firm set up 24 years ago by financial adviser Michael Hoare (62) entered into an expansion agreement with five new shareholders earlier this year only to find within weeks efforts were being made, he claimed, to effectively force him to resign.As a result, Hoare got an interim injunction restraining the firm, Mentor Financials Services Ltd, and other five shareholders from taking steps to terminate his employment. The injunctions were against the company and the other shareholders – Elizabeth Lavin, Darren Nolan, John Flynn, Daniel McKeown and Adam Penrose – and required the defendants to continue to pay Hoare’s salary pending resolution of the dispute or further order of the court.The defendants were also restrained, pending further order, from taking any actions in relation to Hoare’s one-sixth share of the firm and from communicating to third parties to the effect that he has ceased employment with Mentor. Last week, the court was told that mediation to settle the dispute was to take place. However, the court was also told the company was insolvent and would be holding an egm to have it wound up.Will a Middle East peace deal make any difference to inflation? Listen | 32:03On Friday, Eoin Coffey, barrister for Hoare, told Judge Brian Cregan that discussions between the parties were still ongoing and he was looking for an adjournment. He also said a meeting is due to take place next Wednesday.Counsel agreed with the judge that if the discussions were not successful, he would be seeking a date for the hearing of an application to keep the interim injunction against the defendants in place until the full case is heard.The judge adjourned the case with the interim injunction remaining in place.
Talks ongoing in case by founding shareholder alleging he’s been forced out of company
Judge describes it as apparent ‘cuckoo plundering the nest’
Mentor Financial Services founder won an injunction after shareholders forced him out within weeks of an expansion; the company is insolvent. The case highlights shareholder governance risks—rapid ownership changes without alignment trigger disputes, paralysis, and company wind-up.












