Mr Noel Smyth, yesterday ousted as chairman of Dunloe Ewart, will seek compensation for loss of office if and when his contract as chief executive of the firm is terminated.

Mr Smyth expects his employment to be terminated once the takeover of Dunloe by Mr Liam Carroll is completed.

"They will give me my P45 one of these days," he said.

In such an event, Mr Smyth believes it would be "noble" to seek compensation.

"If they don't offer adequate compensation, I will have to consider my position at that stage," he said.

Mr Smyth, who made a profit of more than €30 million on his Dunloe stake when he sold it to Mr Paschal Taggart in November, received remuneration of €603,000 in 2001.

Precedents in the business world suggest that he could feel justified in seeking a "golden handshake" running into millions.

Mr Smyth was speaking after the first leg of a Dunloe extraordinary general meeting which was held at the request of shareholders, Mr Dermot Desmond and Mr Phil Monahan.

The two were seeking to depose Mr Smyth as chairman, a role he has held since 1995. The resolution was supported by 96.5 per cent of Dunloe shareholders. A number of those present at the meeting expressed frustration at the "foregone conclusion" element of the event. Mr Carroll, who has agreed to pay 50 cents for each Dunloe share, controls almost 30 per cent of the company, while Mr Desmond and Mr Monahan own more than 20 per cent between them.

Some shareholders congratulated Mr Smyth on his performance as chairman while others criticised him for not achieving sufficient value for smaller members.

Additional resolutions seeking the removal of three other directors, including Mr Smyth's wife, Anne Marie, were rendered meaningless when those three directors resigned in advance of the e.g.m.

Shareholders also approved the election of five new directors nominated by representatives of Mr Desmond and Mr Monahan: Mr David Harrison, Mr Brendan Murphy, Mr Paul Monahan, Mr Phil Monahan and Mr Brendan Timbs.

In the latest twist to the long-running Dunloe saga, these five directors resigned last night. They will be replaced by Mr Carroll, Mr Garrett O'Reilly, Mr David Torpey and Mr John Pope, with Mr Carroll acting as chairman.

In a statement, companies operated by Mr Desmond and Mr Monahan said their position had now been "vindicated" and that it was no longer necessary for their nominees to remain on the board.

For his part, Mr Smyth said he had recovered from any disappointment he may have felt about the termination of his involvement with Dunloe."I would have been disappointed a couple of weeks ago," he said.