Dáil Éireann debate -
Tuesday, 25 Oct 1994

Vol. 446 No. 3

Written Answers. - Eligibility for Free Shares Offer.

Richard Bruton

Question:

196 Mr. R. Bruton asked the Minister for the Environment if his attention has been drawn to the fact that the Building Societies Act, 1989, contains provisions which have resulted in the disqualification of joint account owners from benefiting from the free share offer provided by the Irish Permanent PLC in that it defines only one of the named joint account holders as eligible to benefit, resulting in disqualification where the named account holder is since deceased; and if he intends to introduce legislation to address this matter. [2168/94]

Minister for the Environment (Mr. M. Smith)

The conversion of a building society into a public limited company must be done under a scheme drawn up in accordance with the Building Societies Act, 1989, and the building society's rules. The scheme must be approved by the Central Bank. I have been informed by the Central Bank that its interpretation of the relevant provisions of the Act, supported by legal advice, is that only the first named holder of a joint account is the person entitled to vote on a conversion resolution and receive free shares, and that this right does not automatically pass to the next holder in a joint account. I am having the matter further examined in consultation with the Central Bank.