Written answers

Thursday, 26 June 2008

5:00 pm

Photo of Paul GogartyPaul Gogarty (Dublin Mid West, Green Party)
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Question 84: To ask the Minister for Transport the directors representing the Government on the board of Aer Lingus; when they were appointed; the number of directors the Government is entitled to have on the board; and if he has held discussions with directors in relation to the re-introduction of the Aer Lingus Shannon-Heathrow service. [25125/08]

Photo of Noel DempseyNoel Dempsey (Meath West, Fianna Fail)
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Under the terms of the Memorandum and Articles of Association of the company the Minister acting through the Minister for Finance, in his capacity as shareholder, is entitled to nominate up to three persons as "Minister's Nominees" on the Board of Aer Lingus. The current directors are Mr. Francis Hackett, Mr. Chris Wall and Dr. Colin Hunt.

Mr. Hackett became a "Minister's nominee" to the board following admission of the company's shares on the Stock Exchange on 2 October 2006. Mr. Chris Wall was first appointed to the Board of Aer Lingus on 23 December 1998 and served as an independent director following the IPO. His position was re-designated as a "Minister's Nominee" from 31st January 2008. Dr. Colin Hunt's nomination is also effective from the 31st January 2008.

Under Company Law all directors are obliged to pursue the best interests of the company. Subject to that duty the three Minister's Nominees have been mandated to seek to ensure that all future decisions of the company that have significant implications for wider Government, aviation or regional development policies are considered at board level. In any such decisions, the State-nominated directors are directed to seek to reconcile commercial and public policy objectives. Decisions relating to the re-introduction of Shannon Heathrow services are commercial decisions for the company.

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