A NUMBER of former non-executive directors of the nationalised Anglo Irish Bank have sought independent legal advice over whether they could be exposed to possible court action arising from the controversial purchase of 10 per cent of the bank’s shares last year.

Some former board members of the bank have obtained legal opinion concerning their knowledge of the transaction which arose following the unwinding of the 25 per cent indirect stake held by businessman Sean Quinn.

Mr Quinn and his family acquired 15 per cent of the ordinary shares in the bank in July 2008, leaving an “overhang” of 10 per cent, which was acquired by 10 investors assembled by the bank.

The transaction prevented the dumping of a large tranche of the bank’s shares into the market, a move that would have driven down the bank’s stock, increasing uncertainty about the bank at the time.

The 10 investors were longstanding customers of Anglo who used loans of €451 million from the bank to buy the shares.

The bank has since written off €308 million of these loans.

Mr Quinn had acquired his 25 per cent interest through contracts for difference which allowed him to build his stake in Anglo without publicly disclosing it.

Five non-executive directors of Anglo – Michael Jacob, Gary McGann, Ned Sullivan, Noël Harwerth and Anne Heraty – resigned last January after the institution was nationalised and following the resignations of chairman Sean FitzPatrick and chief executive David Drumm the previous month.

While it is thought that the board was not informed of the identities of the clients who purchased the shares – known as the “Maple 10” – they were aware that they were customers of the bank.

Some of the non-executive directors have sought legal advice to ensure that they are not exposed to any potential legal action arising out of the investigations being conducted into the bank.

Anglo’s executive chairman Donal O’Connor, who was appointed a non-executive director in June 2008, said last month that the board of the bank was aware in July 2008 of the loans to the 10 customers.

“The board was not aware that there was anything unsatisfactory about the transaction,” he said.

He said he could not recall if the matter was discussed at a board meeting but he could not be sure.

The Financial Regulator was aware of the 10 per cent share placing with the clients at the time of the transaction.