Nationwide faces Central Bank probe

IRISH NATIONWIDE Building Society’s rejection of four motions to be put before this year’s annual general meeting by dissident shareholders is to be investigated by the Central Bank.

Under mounting pressure from some members, the society disallowed the motions to go before the AGM because they were outside the rules or “Ultra Vires”. Dissident members want the society privatised so as to get their hands on as much as 7,000 per member.

They also want chief executive Michael Fingleton dismissed, because they regard his grip on the society as all pervasive and detrimental to the interests or members.

Those fears were heightened over the weekend after it emerged Maurice Hart had quit his post of eight months with the society as chief general manager.

His appointment was seen as signalling a “new beginning at the society,” and the surprise move has raised further concerns in the minds of concerned members, according to Shane Hogan, who heads the Campaign to Demutualise Irish Nationwide, one of the driving forces behind the failed vote of no confidence and the campaign for demutualisation.

Last night, he warned Irish Nationwide faced a “long battle” from members.

“We are patient and persistent people and we are not going away just because we have hit the first bump on the road,” he said.

Mr Hogan said the Central Bank had confirmed to him it was examining the reasons for the rejection of the motions put by him and other members of the society.

If the Central Bank finds there are no grounds for action against the society, members who want change “will find other ways of achieving their aims”, he said.

In its letter rejecting the proposals, the society said allowing a vote on demutualisation at the next AGM was likely “to diminish substantially public confidence in the society”.

Dissident shareholders also wanted a motion on the agenda calling for the dismissal of chief executive Michael Fingleton and other changes that would radically change the face of the financial institution.

Shane Hogan pledged to keep the pressure on the society in the months ahead.

“Past experience has shown that it is possible at the end of the day to find means whereby pressure can be brought to bear on those at the top in societies,” he said.

Mr Hogan said he regretted the departure of Mr Hart last week from the society after such a short space of time in office.

Previously, his appointment seemed to signal a “move away from the society being a monolith, but it doesn’t seem to have happened given the events of last.