Alice-Mary Higgins (Independent) | Oireachtas source

I have a particular concern about section 7. I will probably table amendments to the section on Report Stage. My particular concern relates to the extension of section 6(4) of the Act of 1994, which will allow for the participation of limited partners on advisory committees. They will also be allowed to serve on boards and committees of investment limited partnerships and to appoint, elect or otherwise participate in the choice of representatives or any another persons to be on such a board or committee. They will also be allowed to act as a member of a board on a board or committee.

My concern about this section is that, in other parts of the Bill, limited partners are excluded from a lot of liability. This Bill effectively ensures that, in many cases, limited partners will be excluded from a wide range of both criminal and financial liabilities. We will discuss those liabilities later. The real concern is that this section would allow limited partners to serve on boards and committees that are making decisions, even though they will have less liability than other board members. This raises a question of responsibility. We are giving people power to take part in the business of these investment partnerships and to potentially influence and guide what general partners might do, but they will not share in the liability. It is an extension of the safe harbour provisions provided in other legislation for other reasons. The rationale for this needs to be looked at. Perhaps the Minister of State can clarify that rationale.

There is a real risk that we will end up with a nominal general partner who will hold and carry the liability while limited partners, who are excluded from liability, call the shots and steer and guide what happens in an investment limited partnership through their role as members of the board or their role in selecting those members. The Minister of State can see my concern. These people will have powers but not responsibilities. That is my concern and, for that reason, I will oppose section 7 of the Bill.