Dermot McLaughlin, currently suspended chief executive of Temple Bar Cultural Trust (TBCT), is to leave his post on December 31st after months of wrangling over his responsibility for “corporate governance failures” in the publicly-owned company.

In a brief statement, TBCT's board said it had reached agreement with Mr McLaughlin (above) "on a range of issues" and that he would be "stepping down from his role as chief executive . . . in light of the decision to wind down TBCT" and subsume it into Dublin City Council.

“The board acknowledges that during the past year extensive and often critical press coverage has been challenging for all concerned with TBCT, including Mr McLaughlin,” it said, adding that it recognised his “significant leadership role” in steering Temple Bar since 2003.

Mr McLaughlin had taken legal action against its directors for breach of contract and defamation and also indicated that he would seek a High Court injunction preventing the board convening a disciplinary hearing on whether he should be dismissed.

The specific focus of the hearing was to be on his role in offering generous redundancy terms to four senior staff members without the board’s knowledge or approval. Instead, company chairman Daithí Ó Ceallaigh entered into negotiations with Mr McLaughlin.

As part of the settlement, Mr McLaughlin agreed to withdraw his legal actions while TBCT agreed to cancel the disciplinary hearing, which was to have been held this week. It is understood that a substantial severance package was also agreed.