INM loses bid to prevent inspector appointments Judge dismisses ‘novel’ legal battle
A HIGH Court judge has dismissed a challenge by Independent News and Media against a legal bid to appoint inspectors at the company.
Ireland’s corporate watchdog wants the court to appoint specialists to probe governance arrangements at the country’s biggest newspaper group, including allegations of a major data breach.
In a bid to halt the case before it was fully aired, INM challenged how the Office of the Director of Corporate Enforcement launched its legal bid, insisting it should have consulted it first.
But yesterday, Mr Justice Seamus Noonan said: “Such cannot be sustained.”
He added the idea the company should be consulted first is “novel and without precedent”.
A lawyer for the ODCE has previously said there was a compelling public interest in the appointments.
INM chairman Murdoch Maclennan added it was “not in the interests” of the firm for an inspector to be appointed.
He previously said: “If there was any wrongdoing in the past it was without a proposition the knowledge or approval of the board. The board is prepared to take such steps as are necessary to protect INM’S interests and to obtain redress from third parties if advised that it is appropriate.”
In March the group received information from the ODCE about the danger of personal data having been put at risk of inappropriate disclosure. Journalists’ information may have been involved.
INM, which owns the Irish Independent and Belfast Telegraph, appointed Deloitte to conduct a full investigation. The corporate probe began in 2016 after concerns were raised over the details of a possible acquisition by INM of radio station Newstalk.
The case will be heard again before the High Court next Wednesday in order to set a date for the ODCE application.
After yesterday’s decision, INM reiterated it would be urging the High Court not to appoint inspectors.
A statement said: “The Board will consider the terms of today’s decision and the further action the Company might take in the interests of the Company and its stakeholders.”