Society group claims victory

Campaigners who are seeking the demutualisation of the Irish Nationwide building society have claimed a significant victory and the backing of its efforts by the Central Bank, writes Siobhán Creaton, Finance Correspondent.

The group, led by Mr Shane Hogan and Mr Brendan Burgess, had petitioned the building society to have a vote on demutualisation at its annual general meeting on April 24th. It had also sought a vote of no-confidence in Irish Nationwide chief executive Mr Michael Fingleton.

The motions were dismissed by the society in December but will now be discussed at the a.g.m. following the intervention of officials at the Central Bank and the new Irish Financial Services Regulatory Authority (IFSRA).

In a statement, the campaigners noted that their motion of no-confidence in Mr Fingleton had been amended. Instead, members will be asked to vote on a motion of confidence in the chief executive. "This is the first time in living memory that the Central Bank has responded in a clear and visible manner to consumer pressure in supporting the interest of the members of the mutual society," their statement said.

In a letter to Mr Burgess and Mr Hogan, the Central Bank explained that the five motions did not strictly comply with the rules of the society but that it believed members had a right to air their views.

A spokesman for Irish Nationwide rejected the claim that it had been forced by the Central Bank to adopt the motions. "It is totally untrue that the Central Bank has forced the society to include any resolution. The resolutions which will be put before the meeting are solely the society's resolutions."