Noel O'Callaghan says sons trying to freeze him out of business he set up
Mr O'Callaghan (74) stepped back in 2016 from the business he built from scratch over 40 years. The first hotel his group acquired was the Mont Clare in Dublin in 1984.
Advertisement
In addition to five hotels it operates, it also owns the 450-acre Mountarmstrong stud farm outside Cashel in Co Tipperary, along with around 100 rent apartments owned by Só Living.
In his proceedings, it is claimed he stepped down from the day-to-day management of the group to focus on Mountarmstrong and his bloodstock business. He left the day to day running to his sons.
The transfer was done in time for his 66th birthday in order that substantial Capital Gains Tax relief would not be lost.
It is claimed that in agreeing the transfer of his shares in Saira Co Dublin Unlimited Company, in which he is a director along with his sons Paul and Charles who now run the group, he wanted a "fallback position in the event of any future dispute" whereby he could retake control of Saira.
Advertisement
Accordingly, Paul and Charles, along with his third son Bryan who was involved in the business until he departed in 2023, signed a form of proxy appointing their father to act as each of their proxy and vote on their behalf at meetings of the Saira board. The proxy is still extant and binding, it is claimed.
As part of the 2016 agreement, their father was to be paid an annual salary of €500,000 for the rest of his natural life and to have his credit card expenses discharged along with giving him the benefit and control of Mountarmstrong.
After Bryan left in 2023, a new shareholders agreement was made but it is claimed this did not replace the 2016 agreement.
The stud farm, which comprises a large number of racehorses, was operated by Saira subsidiary, Sherborough Development Co Unlimited Company, and Noel O'Callaghan is the full or partial beneficial owner of the bloodstock, it is claimed.
Advertisement
It is alleged that since 2024, Paul and Charles have attempted to exercise control over the bloodstock with instructions for valuations and sales of some done without their father's consent.
In 2024, Noel sold his interest in a commercial property called the Archers Building in Fenian Street, Dublin, to Saira. It is claimed that there was a failure to disclose KBC was negotiating the surrender of its lease on the building, which was eventually done for €16.6m, and this resulted in an undervaluation of the building at the time the father sold his interest.
It constituted a material non disclosure and secret profit, it is claimed.
His relationship with Paul and Charles began to deteriorate in 2024 with the purchase of residential properties in Warrenpoint for their personal use, the withdrawal of instructions to prepare board packs for directors meetings and the payment of a dividend of €3.2m to the two sons.
Advertisement
When Noel challenged these decisions, his sons began to "freeze" him out by removing clerical support and the cancellation of payments to him by Saira, including health insurance.
The proceedings by Noel are against Paul and Charles, Saira and Sherborough.
On Monday, the case was admitted on consent to the Commercial Court on the application of Martin Hayden SC who said, in reply to a question from Mr Justice Mark Sanfey, that mediation had been tried already.
The judge said in cases involving close family members mediation was desirable.
He approved agreed directions for the progress of the case and adjourned it to November.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
BreakingNews.ie
32 minutes ago
- BreakingNews.ie
A fifth of people deemed at risk of poverty in eight-year period, says study
Almost a fifth of people were deemed at risk of poverty at least once between 2015 and 2023, according to a study. The Economic and Social Research Institute (ESRI) published research examining the complexities of income poverty and deprivation and how they intertwine. Advertisement On average, 22 per cent of the population experienced deprivation at least once in two consecutive years from 2016 to 2023: almost half of these were in persistent deprivation, slightly less than a third were exiting deprivation, and about a quarter were entering deprivation. The study noted that there was a post-pandemic spike observed amongst lone-parent families, 30 to 65-year-old single people, adults above 65, and especially amongst single people over 65. It said the stronger effect for the older population could be explained by the fact that the State pension was frozen in cash terms in 2020 and 2021. The ESRI report, published in partnership with the Department of Social Protection, used longitudinal data from the Survey on Income and Living Conditions (SILC) – the study explores the dynamics of poverty. Advertisement It found that the annual at-risk-of-poverty (AROP) rate declined from 16 per cent in 2016 to 11 per cent in 2023, while the persistent AROP rate declined from 10 per cent in 2015-2016 to 7 per cent in 2022-2023. The latter shows the share of the population who were AROP two years in a row. Material deprivation increased in the recent period from 14 per cent in 2021 to 17 per cent in 2023. Over the period 2016 to 2023, an average of 5 per cent of people were both AROP and deprived. Advertisement Lone parent families, large families, and households with a working-age adult with a disability faced the highest risks of persistent AROP and deprivation, it said. Children in lone-parent families, in particular, are most at risk, with an average of 33 per cent of them being persistently deprived, and 21 per cent being persistently AROP, between 2016 and 2023. The report said that implementing 'targeted' policy measures to support lone parents, large families, and households with a person with disabilities is essential to help those at high risk of poverty. It said timely adjustments to social welfare payments, including pensions, would be 'critical' to protect vulnerable groups from inflation. Advertisement Co-author Anousheh Alamir said the report highlighted 'the complex nature of poverty' and how different groups face different risks over various time periods. 'Over two-year stretches, lone parent families and households with a disabled adult are found to be the most at risk of income poverty and/or material deprivation for one year only. 'And while they are also the most likely to be materially deprived two years in a row (i.e persistently), large families are the most at risk of income poverty during that time. 'Thus, different groups are vulnerable to different forms and durations of poverty, an insight that should be key for effective policy.' Advertisement
BreakingNews.ie
11 hours ago
- BreakingNews.ie
Classic Hits radio fails to prevent rival from using brand name GHR
The High Court has refused an injunction preventing a rival broadcaster to the Classic Hits Radio station owners from using the brand name "GHR". Choice Broadcasting Ltd, which is part of a group behind Radio Nova and Sunshine 106.8, owns Classic Hits Radio. The overall parent is Bay Broadcasting Ltd and it has been broadcasting as "Ireland's Classic Hits Radio" for the last three years. Advertisement GHR is a brand name by Bauer Audio Ireland Ltd, part of the 150-year-old Germany-headquartered Bauer family company, which manages a portfolio of eight FM radio stations in Ireland including Today FM, Newstalk, 98FM, Spin 1038, Spin South West, Cork's Red FM, iRadio and Beat. Along with GHR, Bauer also owns the brands 'Greatest Hits Radio', both of which it launched in the United Kingdom in 2019. Bauer says these are part of its brands to its more contemporary 'Hits Radio Network' radio service. The GHR Network of stations in the UK have a combined weekly reach of 7.1 million listeners and includes over 50 local and regional radio stations. On June 20th, Choice obtained an interim injunction preventing Bauer using the name 'Greatest Hits Radio' on the Failte DAB+ multiplex and any other delivery platform that is available in the Republic of Ireland. Choice claimed Greatest Hits Radio would infringe the plaintiff's trademark, 'Classic Hits'. Advertisement When the case returned to court a few days later, Bauer said it would not seek to contest the injunction but would instead seek an early hearing of the entire matter. It also said, instead of Greatest Hits Radio, it intended to trade using the initials 'GHR', both in its announcements and jingles on the radio station, and in its logo and advertising until the trial of the action. Choice objected, and there followed a hearing of the issue of extending the injunction to cover the use of GHR, which was strongly contested by each side. On Wednesday, Mr Justice Brian Cregan ruled the terms of the injunction do not include the initials 'GHR'. Advertisement He found Choice had not made out a fair issue to be tried that the initials 'GHR' amounted to passing off its brand or that there was a fair issue to be tried in relation to alleged infringement of trademark. Entertainment Today FM announce Oasis ticket giveaway and launch... Read More Even if it had, the balance of justice would have been in favour of refusing the application to extend the injunction to 'GHR', he said. The judge also said that even if he had found in favour of Choice in relation to fair issue and balance of convenience, he would have considered its (Choice's) undertaking that it could pay damages if it lost the case not to be sufficient on its own. This was in circumstances where the evidence showed Choice is "balance sheet insolvent" and has created a charge over all of its assets, he said. He would therefore have concluded that a fortified undertaking as to damages from Choice's parent company was required. He said he would hear the parties later in relation to the fortified damages undertaking.
The Independent
12 hours ago
- The Independent
UK Government urged to reconsider decision to cut cash for peace fund
The UK Government has been urged to reconsider its decision to cut its backing for a significant Irish peace fund. The Government confirmed it had decided not to continue with the £1 million contribution to the International Fund for Ireland (IFI) in 2024-25, citing a 'very challenging fiscal position'. The IFI was originally set up by the UK and Irish governments as an independent international organisation in 1986. It delivers a range of peace and reconciliation initiatives across Northern Ireland and Irish border counties, including supporting communities to work towards removal of the remaining peace walls. Sinn Fein North Belfast MP John Finucane said he is concerned about the move, and said he will raise it directly with Secretary of State Hilary Benn. 'It is extremely concerning that the British Government is to cut funding for IFI,' he said. 'IFI was established to promote peace, reconciliation and a better future for all communities across Ireland. 'Peace is hard-won and hard-fought. It can never be taken for granted, and crucial funds like this must continue to be supported. 'The British Government should be increasing funding in light of the withdrawal of US support, not imposing further hardship. 'I will be writing to British Secretary of State Hilary Benn, calling for his Government to reverse this decision and ensure IFI can continue its vital grassroots-led programmes.' Responding, a UK Government spokesperson said: 'This Government inherited a very challenging fiscal position, and needed to take difficult but necessary decisions to place the public finances on a sustainable footing. 'As a result, the Government has decided not to continue with the £1 million contribution to the International Fund for Ireland in 2024-25. 'The Government remains supportive of the IFI's aims of promoting peace and reconciliation.'
