Credit unions in Ireland are regulated and supervised under the Credit Union Act, 1997 (the 1997 Act) and regulations issued by Central Bank, which set out the framework for the registration, regulation and operation of credit unions.
Board of directors
Sections 53-57 of the 1997 Act set out the relevant legislative provisions relating to the directors of credit unions. The process for the nomination of candidates to the board of directors is a matter for the nomination committee of the credit union.
The nomination committee of a credit union is responsible for identifying candidates for election to the board of directors and ensuring such candidates are fit and proper.
Once nominated, members of the credit union vote to elect one or more of the nominated candidates to fill vacancies on the board of directors at an annual general meeting or special general meeting of the credit union at which an election is held for members of the board of directors.
Role of Nomination committee
Section 56B of the 1997 Act sets out detailed provisions relating to the nomination committee of credit unions.
Section 56B(4) sets out the responsibilities of the nomination committee, which include:
identifying candidates to be nominated for appointment to the board of directors;
accepting nominations of candidates proposed to be appointed to the board of directors; and
proposing candidates, for election by a general meeting, to be members of the board of directors.
Only candidates nominated for appointment as a member of the board of directors through the nomination committee may be put forward or seek election to the board of directors at a general meeting of the credit union at which an election is held, in line with Section 56B(5) of the 1997 Act.
Decisions taken by the nomination committee
Where a member wishes to make a complaint related to their credit union, including regarding a decision taken by the nomination committee, this may be raised directly with the credit union concerned in accordance with the credit union’s complaints process.