The special liquidators of Irish Bank Resolution Corporation are believed to have served legal papers on four former directors of the Irish Nationwide building society.
It is understood papers were served yesterday on former chairman Michael Walsh, and ex-directors Terence Cooney, Stan Purcell and David Brophy.
Former managing director Michael Fingleton is also expected to be served with papers. It is believed that representatives for the special liquidators could not establish contact with Mr Fingleton to serve him with the legal paperwork.
The former directors are facing legal action in relation to their stewardship of Irish Nationwide prior to its nationalisation in 2010 and subsequent merger with Anglo Irish Bank into IBRC.
This follows a move by IBRC last year to take legal action against the directors of the building society.
IBRC filed a plenary summons in the High Court in March 2012 so its legal action would not be constrained by time limits under the statute of limitations.
The statute blocks legal actions after six years in contractual disputes.
The proceedings relate to matters dating back to 2006 when the men were directors of Irish Nationwide and centre on actions taken by Mr Fingleton and the board’s oversight of his role and management of the lender.
No comment was available last night from the special liquidators of IBRC – Kieran Wallace and Eamonn Richardson of KPMG. IBRC was placed into liquidation early last month by the Government.
It is understood that the legal action relates to alleged breach of contract, breach of fiduciary duty and breach of duty of care.