Vol. 442 No. 5
87 Mr. Yates asked the Minister for Finance if he has satisfied himself with the conversion procedure of building societies arising out of the recent conversion by the largest building society; if he has satisfied himself that the Central Bank has carefully considered all complaints lodged by shareholders in relation to it; and the proposals, if any, he has to revise the regulations or law relating to such matters in the future.
The Central Bank supervises the building societies under the Building Societies Act, 1989. That Act lays down the procedures to be followed by a building society which proposes to convert to a public limited company, including a requirement that a conversion scheme be confirmed by the Central Bank.
Under the Act, the Central Bank is required to consider any objections or representations from the public in respect of a proposed conversion and is also required to allow the society to comment on these objections or representations. I understand that, in the case of the Irish Permanent Building Society, this process is currently underway and that when the Bank has completed the process it will decide, in accordance with the Act, whether or not to confirm the conversion of that Society. The Central Bank is independent in the exercise of its supervisory functions under the Act. The Act also provides a means wherby members of a society who consider that their rights are not being vindicated in the conversion scheme can challenge the scheme in the High Court.
