Probate Judge Derrick Chan on Thursday rejected Janeen-Ann Olds’ petition to be reappointed to a second term as a Kamehameha Schools trustee amid growing opposition from fellow trustees and prominent Kamehameha alumni to the telecom executive’s continued tenure.

“It’s the court’s paramount objective to consider only the best interest of the trust,” said Chan to a packed courtroom in downtown Honolulu. “And therefore, based on the records and files in this case, I must deny this petition.”

Olds’ bid to serve for 6-1/2 more years on the board of the $11 billion land trust, which educates about 6,900 Native Hawaiian students annually was derailed by ongoing concerns about the operations of Sandwich Isles Communications, for which she serves as CEO, and its parent company, Waimana Enterprises.

Hours after the court decision, Olds resigned from her post as trustee — her current term wasn’t set to expire until the end of January.

“Though I am disappointed in the decision, I am more concerned with the change in the trustees’ position of the reappointment and the lack of trust you have expressed in my being able to fulfill my fiduciary duties to the trust though my past service to the trust has not been questioned,” Olds said in a letter to the other trustees that was released to the media. “However, in the best interest of the trust, I tender my resignation as a trustee of Kamehameha Schools, and any other board position that I hold as a result of my trustee position, to be effective immediately.”

Olds goes on to say that she will not accept any compensation for her work at Kamehameha Schools for the past month “since you raised issues as to my integrity and honesty.”

Trustees earned on average $160,000 last year, according to court filings. As former chairwoman, Olds earned $207,000 for the 2014 fiscal year.

Sandwich Isles and Waimana have come under increased scrutiny from federal and state officials following the July conviction of company founder Al Hee on multiple counts of tax fraud. Federal prosecutors accused Hee of skimming $4 million from the company to pay for family vacations, jewelry, a home in California, college tuition for his children, unjustifiable salaries for his family members and other personal expenses.

The Federal Communications Commission has launched an extensive audit of Sandwich Isles in light of the conviction. Meanwhile, Hawaiian Homes commissioners recently questioned Hee and Olds about why half a percent of their profits was never turned over to the Department of Hawaiian Home Lands to fund job training and education programs for Native Hawaiians, as required under their license to operate on DHHL lands.

It was an awkward scene outside of Chan’s courtroom Thursday morning as the four other trustees — Robert Nobriga, Lance Wilhelm, Micah Kane and Corbett Kalama — gathered in one area of the hallway and Olds and her supporters another, as they waited 45 minutes for the case to be heard.

This is the first time that trustees have opposed the reappointment of a fellow trustee since 2000, when the appointment process was changed following scandals involving the trust, formerly called Bishop Estate.

By the end of that decade, all five of the trustees had either been removed or resigned following allegations of gross mismanagement of the trust and political favoritism in awarding trusteeships.

Fifteen years later those wounds appeared fresh as Kamehameha alumni and trustees in filings with the court fretted over Olds’ potential to damage the school’s reputation.

In addition to strongly worded opposition from the other trustees who recommended to the court last month that Olds not be reappointed, Olds’ petition for reappointment as a Kamehameha trustee was also opposed by a number of prominent alumni, including the school’s former president Michael Chun, who retired in 2012.

Attorney Lex Smith, who also works for one of Sandwich Isles’ affiliated companies, represented Olds before the court Thursday. He argued that Olds had served the trust well for five years and that concerns about her leadership lacked merit.

Olds “is one of the lawyers in this community with absolutely high ethical standards and integrity,” he argued.

Smith said that it wasn’t necessary for Olds to have the support of her fellow trustees to serve on the board and suggested that some of the criticism of Olds has been overwrought.

“The process exists in order to make sure that this isn’t just a popularity contest or that people with some emotional complaints, or because they don’t like somebody, don’t … improperly influence the process,” he said.

Rhonda Griswold, who represented Kamehameha Schools, countered that Olds had deflected responsibility for the accounting and tax practices of Waimana and sidestepped questions from her fellow trustees about the concerns of federal regulators.

Further, she said that Olds “on various occasions had advised her fellow trustees that she didn’t need their support or the support of the community.”

“It’s not a popularity contest,” said Griswold. “But it is critical to the foundation of the trust that the trustees and the public at large and Hawaiian community have confidence in the leadership that this court chooses. It’s such an important position. It’s not a right to serve as a Kamehameha trustee; it is a privilege.”

Olds’ reappointment as a Kamehameha trustee was also opposed by attorney Malia Schreck, who was hired by the court to independently review Olds’ application.

Olds quickly left the courtroom after Chan’s ruling, leaving Smith to answer media questions.

“We don’t feel that the things that were brought up late against (Olds) provide any realistic justification for not reappointing her,” said Smith. “So we’re sad.”

Robert Nobriga, chairman of the Kamehameha trustees, said after the hearing that the trustees were ultimately concerned about the school’s reputation and that they appreciated the judge’s decision.

“We feel it is the right decision and in the best interest of Kamehameha Schools,” he said. “We are looking forward to putting the matter behind us and focusing on getting back to business, executing our new strategic plan, continuing to educate Native Hawaiians and continuing to transform lives.”

A search is expected to begin soon for Olds’ replacement.