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

These amendments relate to eligibility for membership of the board of directors and have arisen from constructive debates with Members from both Houses of the Oireachtas over the past number of weeks. This was another issue that Senators Reilly, Byrne, Gilroy and D'Arcy raised in terms of the membership of the board of directors and we are attempting to meet this by way of the amendment.

The effect of these amendments reduces the exclusions that would apply to the membership of the board. These exclusions were in place in the original Bill and, following consultation, the Minister has agreed to change them. Amendment No. 37 allows volunteers of other credit unions as well as a member of the board oversight committee of another credit union to be on the board of the credit union.

Amendment No. 38, from Senators Reilly, Cullinane and Ó Clochartaigh, proposes to delete a voluntary assistant from the list of exclusions from the board of directors. A number of amendments have been made to board exclusions today. However, it is not appropriate to remove volunteers from the list of exclusions on the board of directors. The core change at the centre of the governance provision in the Bill is to separate the role of the board in overseeing the credit union's operations from the day-to-day operations themselves. These exclusions are designed to ensure that persons are not overseeing their own work and answerable to themselves. I do not propose to accept this amendment.

Amendment No. 39 removes the prohibition on family members of volunteers of the credit union becoming directors. This also removes the express exclusion of members who are in arrears greater than 90 days and instead, provides that the credit union rules should apply with the eligibility of such a member.

Amendment No. 175 is a follow-on from amendment No. 39. This amendment provides that the rules of a credit union must set out how the credit union will deal with members of the boards of directors and board oversight committee who are in arrears greater than 90 days, and including suspension and removal of the director.