The High Court has struck out the proceedings taken by Independent News and Media non-executive director Paul Connolly against the media group over its payment of €1.87m to its former chief executive Gavin O'Reilly.
The group paid Mr O'Reilly the compensation when he resigned from his position in April.
Tension has been growing between the board and the group's biggest shareholder, Denis O'Brien.
Paul Connolly, a non-executive director at INM, told the court last month that the payment to Mr O'Reilly was approved with "undue haste" and he wanted declarations that the payment was unlawful under the Companies Act on grounds it should have been approved first by shareholders.
INM asserted that the agreement arrived at with Mr O'Reilly fell within the exceptions to Section 186 of the Companies Act, because it constituted a genuine attempt to resolve an employment dispute.
The case had been heard before the High Court in June and judgment had been reserved.
It was indicated to the Court that the issues had been resolved between the parties and that, in those circumstances, the proceedings could be struck out with no order.
