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

The amendment sets out new provisions concerning the suspension and removal of directors of the board oversight committee. Issues arose during the debate in the Dáil about the procedure for the suspension and removal of directors, particularly in relation to the directors concerned being provided with written notification of the board oversight committee's reasons for taking action under this section. The Minister, on both Committee and Report Stages in this House, indicated his willingness to look again at these provisions and the amendment reflects the changes necessary in order to address the concerns raised by colleagues in the Dáil. The amendment brings the procedure for the removal of a director at a special general meeting convened under this section into line with that for the removal of a director from office by members of a credit union which is set out in section 56 of the 1997 Act, thereby ensuring greater procedural consistency from one Act to the next. Under this section, the board oversight committee can suspend a director where it considers that a member has taken an action or decision which is not in accordance with Part IV of the 1997 Act.

Deputy Richard Boyd Barrett proposed an amendment on Committee Stage in the Dáil which was accepted by the Minister and provides that the board oversight committee is required to give written notice to the director setting out the reasons for its decisions before suspending the director or convening a special general meeting of the credit union to consider whether to remove the director. Where a director is suspended by the board oversight committee under this section, the suspension takes effect immediately and if that director does not resign within seven days of being suspended, the committee shall convene a special general meeting to review the suspension and consider whether to remove the director. At a special general meeting convened in accordance with this section the members may ratify the suspension, rescind it or remove the director from office. The amendment provides, in a similar manner to section 56 of the 1997 Act, that a director is entitled to written notice of a special general meeting to be held under this section not less than 21 days in advance of the meeting. The amendment also sets out the procedure for the director in question to make written representations in advance of a special general meeting and that the director has the right to be heard orally at such a meeting. The Minister is confident that the amendment addresses the concerns raised by Deputies in this House.

See this speech in context