Brian Hayes (Dublin South West, Fine Gael) | Oireachtas source

This group contains the amendments about which Deputy Doherty is concerned. A number of amendments were made on Committee Stage in the Seanad which relate to eligibility for membership of boards of directors and which arose as a result of constructive debates with Deputies and Senators in both Houses in recent weeks. The effect of these amendments will be to reduce the exclusions that would apply to members of boards. There was a great deal of discussion in respect of this matter on Committee Stage and Report Stage in the Dáil and the Minister, Deputy Noonan, gave a guarantee to the effect that he would introduce amendments. These are the amendments before the House. I accept that not everyone will be satisfied with them but we have gone as far as possible.

Amendment No. 35 allows volunteers from a credit union, as well as a member of the board oversight committee of such a credit union, to serve on the board of another credit union. That is the first substantial change and it means that if a person is a volunteer with one credit union, he or she can serve on the board of another. That was the first exclusion we overturned.

Amendment No. 36 removes the prohibition under which family members of volunteers on credit unions may not becoming directors. This was the second exclusion, under which, if a person was a volunteer in a credit union, he or she was excluded from serving on the board. The Minister stated that he would introduce an amendment in this regard and he has done so. This amendment also removes the express exclusion of members who have been in arrears on their repayments for more than 90 days. Instead, it provides that credit union rules should deal with the eligibility of such members.

Amendment No. 174 follows on from amendment No. 36 and provides that the rules of a credit union must set out how it will deal with a member of the board of directors or board oversight committee who is in arrears of more than 90 days, up to and including suspension or removal of that member.

Amendments Nos. 95 to 111, inclusive, and 113 relate to exclusions from the board oversight committee. There was much constructive debate in the Dáil and Seanad in respect of the eligibility for membership of board oversight committees. A number of amendments were proposed in respect of section 53(10) in the context of changes to the exclusions from boards of directors. These amendments were proposed in order to ensure consistency between boards and board oversight committees. Their effect will be to reduce the number of exclusions that would have applied in respect of membership of board oversight committees.

Amendment No. 95 allows volunteers from other credit unions to be on the board oversight committee of a credit union. This matter arose on foot of Committee Stage proceedings in the Dáil. Amendment No. 106 removes the prohibition on family members of the credit union becoming members of the board oversight committee. Amendment No. 96 allows a director of another credit union to become a board oversight committee member. Amendment No. 108 clarifies that a member of the board oversight committee of the credit union cannot also sit on the board of directors of the same credit union. Amendment No. 104 makes a change to the exclusion of auditors from the board oversight committee. This exclusion will now include a person employed or engaged by that auditor and is designed to guard against any conflict of interest in the context of a person's having worked in other credit unions or possessing information about what is occurring in another credit union. Amendment No. 109 deletes section 76N(4)(q) in line with the changes for exclusion from board membership. Amendment No. 110 ensures that where a committee member falls under any exclusion provisions, he or she should resign from the committee.

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