The 40-strong national executive of ISME, the beleaguered small firms lobby group, met yesterday to discuss last week's resignations of six of the organisation's directors.

The six resigned following a protracted difference of opinion on expenses claimed by the organisation's then chief executive Mr Frank Mulcahy. One of the six, Ms Peggy Farrell, had planned to resign anyway, but the decision of the other five to step down took many in ISME by surprise.

ISME chairman Mr Seamus Butler described yesterday's meeting as "very cordial and constructive". He said the issue of Mr Mulcahy's expenses will be resolved within the next week.