Seán Sherlock (Cork East, Labour) | Oireachtas source

I move amendment No. 80:

In page 233, to delete lines 34 and 35 and substitute the following:“(10) Any reference in this section to a contract —

(a) shall be read as excluding a reference to a contract the decision as to whether to enter into it is taken, or falls to be taken, other than by the board of directors or a committee of which the first-mentioned director in subsection (1) is a member;

(b) shall be read as including a reference to any transaction or arrangement, whether or not constituting a contract, but, in a case where the transaction or arrangement does not constitute a contract, a like limitation to that which applies under paragraph (a) applies to the construction of reference provided by this paragraph.”.

The purpose of this amendment is to provide clarification. The Bill, as it stands, may lead to a misinterpretation that could result in a situation where directors may feel obliged to seek board approval for minor matters such as opening deposit accounts. This was never intended to be the case.

See this speech in context