One51, the investment group run by former IAWS chief executive Philip Lynch, will see off a challenge from rebel shareholder Gerry Killen to claim a seat on the board, sources close to the company said.

Killen, a former One51 executive who left the company two years ago, is seeking a change in its strategy by selling some of its investments to focus on its waste management division.

Killen will nominate former Beamish & Crawford chief executive Alf Smiddy and consultant Peter Brennan to the board.

Sources close to the company said it has had discussions with it major investors in the past two weeks and is confident that the three directors up for re-election will survive.

Just over 50% of One51's shares, which trade through stockbroking firms, are owned by co-ops. The company's largest investor is Kerry Co-Operative Creameries. One51 chairman Denis Buckley was a director of the Kerry co-op for more than two decades. Both sides are claiming to have the backing of Britain's Co-Operative Society, its second-biggest investor.

The company will also provide detailed answers to an extensive set of questions sent to the board by Killen raising concerns about corporate governance and payments over nearly €5m routed to executives through a company called Chandela.

A defeat for Killen at One51's annual general meeting this week is unlikely to end the row between the two sides. It is understood that Killen will call for an extraordinary general meeting to press his concerns.

Shares in One51 traded at €1.75 last week, down from €3 a year ago. Killen has said the only way to realise value from the company is to sell off One51's investments in Irish Pride bakeries and its stake in NTR, IFG Group and Irish Continental Group.