Anglo assessor to decide on value of shares

SHAREHOLDERS will be entitled to appeal decisions to a tribunal on what sum, if any, the Government will pay for Anglo Irish Bank shares when it goes into state ownership.

Mon, 19 Jan, 2009 - 00:00

The Anglo Irish Bank Bill 2009, which is expected to be passed into law on Wednesday, will allow for the appointment of an independent assessor as soon as possible to recommend a “fair and reasonable” sum for the shares.

When deciding the price of shares, the assessor will take into account information about the bank which was not known to the public but which could have prevented people from investing in the bank had it been available.

Anyone who fails to give information to the assessor or provide it with documents required as part of the process will commit a criminal offence carrying a fine of €5,000 or up to a year in prison.

Under the draft bill, Anglo Irish Bank will freeze the deposits of any client who owes them more than €20 million. This provision in the bill has caused speculation that big borrowers at Anglo might have been clearing out their deposit accounts in the days running up to the nationalisation.

The 38-page bill will be debated at a special sitting of the Dáil tomorrow evening at the same time as the inauguration of Barack Obama as 44th President of the United States.

Five hours have been set aside to debate the legislation and the Government intends to have the bill passed into law on Wednesday.

Shareholders will be entitled to appeal the decision to the Irish Financial Services Appeals Tribunal.

“On hearing an appeal, the tribunal may confirm, annul or vary the determination appealed from and may make any other consequential order,” the bill states.

The Labour Party said there is “news management” involved in holding the debate when all eyes will be on the historic event of Barack Obama being sworn into office.

TD Joan Burton said the debate could have been called for today and could even have been held over the weekend.

The Labour Party has also proposed that the Dáil should stay in session after tomorrow’s debate.

Members are not due back from their Christmas holidays until the following Wednesday, January 28.