AIB's chief executive, Mr Tom Mulcahy, was re-elected as a director of the bank at yesterday's annual meeting, despite a proposal from one shareholder that he be removed from the board.

Mr Niall Murphy called for Mr Mulcahy's removal on the grounds that he bore ultimate executive responsibility for an alleged cover-up by the bank relating to AIB customers in London, who claimed their accounts has been "interfered with'.

However, AIB's chairman, Mr Lochlann Quinn, denied the bank's board of directors had ever concealed such matters and said Mr Murphy's allegations of a cover-up were "absolutely untrue". He said the bank had 23,000 employees and periodically it would have one that would commit a defalcation or misappropriation of funds. Mr Quinn said such was human nature and human frailty and this was a great personal tragedy for the individual involved and their family.

However, in these situations the bank honours its responsibilities to customers and reports the event to the authorities and the appropriate regulatory bodies.

In the instance referred to by Mr Murphy, AIB reported the events to the Bank of England, the Central Bank of Ireland and the police, he said.

AIB is believed to have made payments to customers in London following allegations that a former manager had interfered with their accounts.