Partnership companies are established under the Sub-Programme 2 of the Operational Programme for Local Urban and Rural Development. The Programme stipulates that Partnerships are legally constituted under the Companies Acts and limited by guarantee and comprise of a board of directors, drawn at local level from representatives of: (i) The social partners, that is employers, trade unions and farming organisations where appropriate; (ii) State Agencies such as Forbairt, FAS, Teagasc and relevant education sector interests, local authorities and other regional public agencies as appropriate; (iii) community and voluntary organisations, active in economic and social development in their areas and which will contribute effectively to the local development initiative (paragraph 7.6). The Operational Programme also stipulates that the directors will be selected on the basis of a balanced tripartite representation (paragraph 7.7).
Copies of the Operational Programme have been laid before the Houses of the Oireachtas.
Directors of partnership companies are appointed on the basis of nomination by the State agencies and social partner organisations and a process of nomination from among the community groups active in the economic and social development of the area and which can contribute to the local development process.