Alice-Mary Higgins (Independent) | Oireachtas source

I am very concerned because I thought we were setting up new vehicles. The Bill was to set up investment limited partnerships, as the Minister of State said, and the limitation of liabilities between sub-funds under an umbrella structure. If the nub of this legislation is not accountability for beneficial owners but the expansion of what the Minister of State calls a "white list" into a set of new activities, that is a concern and the case has not been made for it. I have not heard the case for why it is so important to have limited partners on boards and decision-making committees. The Minister of State has said repeatedly that they would only have a consultative role but I must correct him because that is not what is in the text before me. The inserted section states that the white list of activities a limited partner can do includes:

(i) serving on any board or committee ... of the investment limited partnership

[...]

(ii) appointing, electing or otherwise participating in the choice of a representative or any other person to serve on any such board

[... and, crucially,]

(iii) acting as a member of any such board or committee either directly or by or through any representative or other person, including giving advice in respect of,

[that is the consultative piece] or consenting or refusing to consent to, any action proposed by the general partner on behalf of the investment limited partnership and exercising any powers or authorities or performing any obligations as a member of any such board or committee ...

That is a lot of power. That is not consulting or sitting there passively and throwing in one's tuppence worth. These people are consenting or not consenting. That is very significant. If the Government is saying that if they were to consent, not consent or interfere, they would be in breach and would become beneficial partners, it must be clear on that because it is inserting these activities into the section of activities protected from liability under section 6 of the 1994 Act. That is an issue.

There are many companies in Ireland with limited partners or people playing a role. Why would an Irish investment company or a normal Irish company be restricted in how certain investors might participate in the board and decision-making while the Government gives these huge investment limited partnership vehicles a disproportionate level of power, bearing in mind that a number of them may be international or commercial investors from around the world because these are international vehicles? I am concerned about why these particular partnership structures, with up to €100 million or whatever large amounts an investment limited partnership might be in control of, are giving so much power and freedom from accountability to their limited partners in a way that is not reflected in any other company structures and that is not normal.The Bill directly suggests that they will refuse consent to any action proposed by the general partner on behalf of the investment limited partnership. That is straight up in the Bill. Those sections should be refused, rejected and reconsidered and I will call a vote in respect of that.