A LEGAL dispute between shareholders in the Carton poultry processing group has been referred on consent to arbitration.

Gharion, a 40 per cent shareholder, had brought a petition under Section 205 of the Companies Act against Vincent, Justin and Elizabeth Carton and Carton Group Holdings, alleging the affairs of the group were being conducted in an oppressive manner by the directors. Those claims were denied.

The proceedings were transferred to the Commercial Court last month by Mr Justice Peter Kelly, who was told at that stage the respondents wished to bring an application to stay the case and have it referred to arbitration.

Yesterday, the judge was told there was consent to the matter being sent to arbitration and he made the necessary order which effectively ends the proceedings in the Commercial Court.

In the Section 205 petition, John Gilroy, a director of Gharion, claimed the Carton respondents were not concerned with the development of the business of the company but were primarily concerned to manage it as “a family vehicle”.

There was a breakdown of trust between the shareholders, he said.

Mr Gilroy also claimed Carton had paid remuneration or expenses to members of the Carton respondents’ family when, he claimed, those family members did not provide services to the company.