Noel Ahern (Dublin North West, Fianna Fail)

I cannot accept the amendment. It is not appropriate because section 48 of the 1989 Act provides that a building society shall have at least three directors and this is in line with other credit institutions which should have at least two directors. In company law the requirement is also for a minimum of two.

The Bill is intended to address a range of issues based largely on the recommendations of the building society review group relating to the powers of building societies and their options for conversion. It is not intended to deal with matters relating to internal governance of building societies.

This has been the law since 1989 and it has worked well. The building societies, including those that converted to public companies have developed and progressed fairly well. The number of directors is in line with that in other financial institutions outside the building society structure. This works well so why change it or increase the number? The Senator's proposal would exceed the norm for any other similar institutions.