The battle for control of the electronic payments company Payzone has moved from the courtroom to the boardroom following a ruling by the High Court that proper procedures were not followed in the dismissals of senior executives John Nagle and John Williamson.

The two men now face the near impossible task of trying to win over the company's shareholders before Payzone holds an extraordinary general meeting (egm) if they are to remain in charge and wrest management of the firm from its chairman, Bob Thian.

Payzone has decided to proceed with an egm, to be held early next month, to remove Mr Nagle and Mr Williamson. Mr Nagle, in turn, is calling for Mr Thian's removal, but his chances of victory are very slim. UK venture capital firm Balderton Capital, which holds 40.5 per cent of Payzone, appears to be taking management control of the company and siding with Mr Thian.

It is appointing a second director, Jerome Misso, to the board, while its existing director, former Goldman Sachs executive, Mark Evans, will chair an operations committee that will have a major role in running the company. Yesterday's court victory for Mr Nagle and Mr Williamson is quickly becoming a pyrrhic one. It is unusual for a court to reinstate executives without insisting on a period of garden leave and the two men delighted in the court's decision, but they face a much greater challenge at the Payzone board table.

Ms Justice Maureen Clarke ruled that Mr Nagle and Mr Williamson had been deprived of fair procedures when they were dismissed, but said Payzone could still embark on a process that conforms with their contracts and its articles of association.

This means the board can proceed with its egm to oust the two men who are still working at Payzone's offices.

"Route one was tried and it didn't work. Now the board will try route two," said a source close to the company's board.

The men's survival will come down to votes. Any influence that Payzone's banks, which are owed €350 million, could bring to bear will hardly count. Based on votes, Mr Nagle, who holds a 10.5 per cent stake, and Mr Williamson are facing dismissal. About 66 per cent of shareholders were reported to have supported the decision to dismiss them last month.

They will find some comfort in yesterday's court ruling, but they are likely to be looking for new jobs next month.