Special manager order for credit union extended

The High Court has extended, on consent, an order under which a special manager was appointed to Newbridge Credit Union in Co Kildare last January.

The president of the High Court, Mr Justice Nicholas Kearns, was also told yesterday that reports compiled by the special manager contained no allegations of any wrongdoing by the directors of the credit union.

On the application of the Central Bank, the manager was appointed last January after the court was told that draft financial statements for 2011 indicated the credit union did not hold the reserves required under the Credit Union Act and there was uncertainty about its true financial position.

The special management order was made with the agreement of the Minister for Finance and was considered to be in the best interests of the depositors of Newbridge Credit Union, which has about 37,000 members, the court was told.

Luke Charleton of Ernst Young was appointed special manager and the court was told it was “business as usual” while he undertook a reorganisation.

Yesterday, Paul Gallagher SC, for the Central Bank, told Mr Justice Kearns there was no objection to the order being extended to January.

Bernard Dunleavy, for the board, said there were matters of concern the directors wished to raise with the court. Since the manager’s appointment, the directors had been “under a cloud”, Mr Dunleavy added.

However, he was pleased to say the manager’s report contained no allegations of wrongdoing and the respective parties had been working well together.