THE NINE members of the board of the National Asset Management Agency (Nama), who will be appointed by Minister for Finance Brian Lenihan, will have a key part to play in the success or otherwise of the project.
The board will be charged with devising strategic objectives and overseeing the achievement of those objectives. It will make the major credit decisions to be taken by the multi-billion euro agency, including decisions as to whether business plans presented to Nama by some of the State’s largest property groups justify continued financial support for the groups or not.
The agency will be an enormous player in the property market, the performance of which will be a key determinant in whether the agency loses money or not, and so the board will become a new and very powerful body in the State.
The Bill stipulates that the chief executives of Nama and of the National Treasury Management Agency (NTMA) will be on the board. Brendan McDonagh is the acting chief executive of Nama and Michael Somers is the chief executive of the NTMA.
Mr Lenihan, when appointing the other members of the board, is directed by the legislation to select people who have experience at a senior level in such matters as finance and economics, law, accounting, project finance, valuation and risk management.
Members of the Oireachtas or local authorities may not be appointed, and the Minister has to ensure, in so far as it is practicable, there is an equitable gender balance on the board.
There have been suggestions that for the key position of chairman, the Minister might select a senior figure from the legal or accountancy worlds who has a past record of public service. The chairman can only serve for two terms, be they consecutive or otherwise.
The term of office for a director will be five years, although for the first appointed directors, two will be appointed for a term of three years and three for a term of four years. Mr Lenihan will decide on the level of remuneration to be received by the directors. The board will appoint audit, risk and credit committees and will be able to appoint advisory committees.
Members of the board who become bankrupt or have to make an arrangement with creditors, or who are convicted of a company law offence, or who are restricted from operating as company directors, will cease to be members of the board.
The quorum for a meeting will be five, or four if there is a vacancy on the board. The board can make arrangements for “electronic meetings” as long as all members can hear and be heard during the meeting.