Select Committee on Enterprise and Economic Strategy debate -
Wednesday, 11 Dec 1996

SECTION 6.

Mr. Rabbitte

I move amendment No. 10:

In page 9, subsection (1), between lines 5 and 6, to insert the following:

"(f) the directors of the Panel may act notwithstanding one or more vacancies in their number.".

This amendment confirms the panel's right to act where there are director vacancies. The panel had expressed concerns to my Department that the original draft could be interpreted as requiring the panel to be at full complement at all times if it was to be capable of functioning. The amendment clarifies the matter beyond all doubt. I understand that the regulations will specify the minimum number of directors who would have to be present for a decision but it is just to clarify that they would not be incapacitated by the fact that they would not all be present.

Mr. E. O'Keeffe

What would be a quorum?

Mr. Rabbitte

It would be laid down in the memorandum and articles of association of the company. I am open to suggestions. We could specify that a quorum is five or four. I am open to suggestion.

Mr. E. O'Keeffe

Will we say four?

Mr. Rabbitte

I will look at the suggestion that it should be four. I imagine that matters of different degrees of gravity would come before the panel and, in the nature of life, it may be difficult to assemble so many for something that is routine, but something that is more complex would need more people present.

Chairman

Is it possible that this could be done by amendment on Report Stage?

Mr. Rabbitte

That will not be necessary. It will go into the memorandum and articles of association of the company because we are setting up the panel as a company. Deputy O'Keeffe is making this suggestion.

Mr. E. O'Keeffe

We are talking about seven very busy people and it will not be easy to get them together to regulate something. That is why I am looking at a smaller number.

Mr. Rabbitte

We will certainly take that on board when we decide on the number for a quorum.

Amendment agreed to.

Mr. Rabbitte

I move amendment No. 11:

In page 9, lines 6 to 8, to delete subsection (2) and substitute the following:

"(2) The Panel may, if it reasonably considers it is appropriate to do so having regard to its duties generally under this Act, perform any of its functions through or by any of its officers or employees or any other person duly authorised by the Panel in that behalf.".

The purpose of this subsection is to allow the panel delegate functions. Deputy McDowell raised doubts on Second Stage about the scope of the delegation provided for in the original wording of this subsection which he felt was too wide. The revised wording takes account of this by requiring the panel to have regard to its duties generally under this legislation in exercising its delegate function. Furthermore it specifies that a person to whom it is proposed to delegate functions will now require to be expressly authorised rather than, as was in the original draft, appointed by the panel to do this. These extra qualifications should allay the concerns articulated by Deputy McDowell. It is also relevant to note that the articles of association of the panel will have provisions governing delegation and will require the Minister's approval.

Amendment agreed to.

Section 6, as amended, agreed to.

Section 7 agreed to.