Group appeals Irish Nationwide rejection of agm proposals

A group campaigning for the reform of Irish Nationwide Building Society has appealed to the Central Bank and the Irish Financial Services Regulatory Authority over the decision of the society to reject four motions submitted for this year's a.g.m..

Mr Shane Hogan, a member of the Campaign for Reform - Irish Nationwide, said it was disappointing, though not entirely surprising, that the society's board was "strongly resisting our attempts to reform the society".

"Even our simple proposal to allow borrowers to attend and vote at annual general meetings, as the Educational Building Society did some years ago, was rejected as being beyond their authority."

"It is regrettable that the board of the society is not interested in listening to its members, particularly as those members are also its customers and effectively, its shareholders."

A spokesman for the society could not be contacted yesterday. The resolutions submitted by the group included one expressing no confidence in Mr Michael Fingleton, the managing director of Irish Nationwide. Another would instruct the board to prepare for demutualisation, and to commission a due diligence report from independent auditors which would be published by the end of the year.

Another motion would have instructed the board to introduce a published standard variable rate, and to credit all current mortgage account holders for penalty interest amounts above 8 per cent per annum previously charged to their accounts.

According to the group, the motions were rejected by the society for reasons which included the view that they would diminish confidence in the society, that they were ultra vires the powers of the society, and that they involved an abuse of the Building Societies Act 1989.

On Friday a spokesman for the society announced "with regret" that Mr Maurice Harte was resigning as an executive of Irish Nationwide. He said that Mr Harte, "having completed his initial period with the society, has decided to resign from his position as director and chief general manager of the society, to pursue other interests." Mr Harte was not available for comment yesterday.

Mr Harte joined the society from property group Treasury Holdings, where he was chief executive for 18 months.

It remains unclear as to whether Mr Harte, one of three executive directors at the society, will be replaced. The other executive directors are Mr Fingleton and company secretary Mr Paul Purcell.

The Central Bank is normally informed when a senior executive of a major financial institution is resigning and the reasons for the move.

The society has been the subject of calls for improved transparency and improved communications with members and has been the subject of representations by customers to the Director of Consumer Affairs, Ms Carmel Foley.