Jim Walsh (Fianna Fail) | Oireachtas source

It seems from sections 18(1) and 18(2) that a harbour company that wants to borrow will be required to get the approval of the county manager. Can the Minister clarify whether the county manager will be a director ex officio? I do not believe he will be. If he is not a director, this section of the Bill will make him a shadow director. I would like to know whether the fact that a company's borrowings will have been approved by the county manager - they are subject to his approval - could subsequently put the banks in a position to be able to pursue the local authority. I do not know whether this has been legally checked. Is a provision that gives somebody outside the board of the company responsibility for such an important decision in compliance with company law? That is my first question. I have a number of questions on this section. It is customary - I think it is a requirement - for all local authority borrowings to be approved by the council as a reserved function.Overdrafts and loans are, I believe, all subject to the formal approval of the council. In a scenario where there is full integration, I presume that still applies. However, when the company remains as a stand-alone company, this does not apply; instead, it is left to the discretion of the manager. In particular, the issue of blurring the corporate refinement of the manager is significant. I also note that the amount is €200,000, or 50% of the transferred company's assets.