Brian Lenihan Jnr (Dublin West, Fianna Fail)

I propose to take Questions Nos. 6, 21 and 36 together.

These questions are concerned with the issue of possible conflicts of interest for non-executive directors appointed from the panel approved by me in safeguarding the public interest while delivering their obligations to shareholders under company law; the legal mechanisms in place to deal with conflicts of interest should they arise; and the directions they have been given by me so that they can exercise their public interest mandate in the context of company law. The panel of directors to be appointed in the public interest by the covered institutions are subject to the provisions of company law. In company law a director is bound to act in the best interests of the separate legal entity that is the company. The requirement to act in the interests of the company means to act in the interests of the members as a whole, both present and future. It is acceptable for those directors to draw upon their experience, public service interest and civic mindedness and to have regard to that experience when exercising their duties to the company and deciding what they believe is in the company's interests. It is for each director to decide what, in his or her opinion, is in the company's interests. To a great extent the public interest and the interests of the covered institutions are likely to coincide. A solvent, profitable institution which is a going concern and has the confidence of its stakeholders is as much in the public interest as it is in the interests of the covered institutions.

I have arranged for a briefing session for the panel before they take up their appointments so they are fully aware of their public interest mandate and their duties and responsibilities under company law.

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