A resolution to reinstate Mr Frank Mulcahy as chief executive of ISME is to be put to the organisation's annual general meeting next April. The move follows a clamour of calls for his return to the position at the group's annual conference in Waterford yesterday.

During a heated debate on the future structure and constitution of the organisation, delegates strongly defended Mr Mulcahy. Many wanted to take a vote yesterday on reinstating him.

However, Mr Mulcahy said he did not want to split the organisation and said he would be happier if the vote was taken at the a.g.m.

ISME chairman, Mr Seamus Butler, said Mr Mulcahy has signed a contract (for a new position as communications director) and "is held by that". However, he added that if members wanted to propose such a resolution, then he was happy to co-operate.

A succession of delegates defended Mr Mulcahy's role in the organisation over many years and during the recent series of rows and resignations. There was also anger expressed at the structure of the organisation.

One delegate said ISME can only go forward if "Frank is on the rostrum". Another delegate, Mr Michael Reilly, said it was impossible for Mr Mulcahy to do his job with "a cloud hanging over him".

In response to pressure from the audience, Mr Sean Hannick, the chairman of ISME's finance committee, which recently investigated allegations made against Mr Mulcahy, said, while technical irregularities had been found, there were no indications of "fraud or embezzlement".

Mr Hannick was pressed further to say that Mr Mulcahy was "clearly innocent". He replied that Mr Mulcahy was, but said : "There are still some items to be sorted out".

Apart from the debate, the conference was conducted in an amicable atmosphere, despite the last few months which have seen several leading directors of ISME resign.