TODAY'S board meeting of the VHI is expected to ask chief executive Mr Brian Duncan for his response to a report recommending that his contract be terminated. The report is understood to focus on a range of management issues and the working relationship between Mr Duncan and the board.

The report, drawn up by a four-person board sub-committee, is believed to focus on the management of the VHI, its relationship with the board and certain specific issues. Among the areas the subcommittee examined are the handling of disputes with the private hospitals, the disagreement over the role of a senior executive in the organisation and other areas of tension between the board, the management and its chairman.

It is understood to reach strong conclusions on the way working relationships have developed in the company.

The members of the sub-committee which drew up the report are Mr Phil Flynn, former president of ICTU, Ms Suzanne Kelly, a barrister and tax adviser, Ms Clare O'Connor, a microbiologist at UCD and Mr Paul Coulson, a businessman. Three of these are recently-appointed board members, the exception being Ms Kelly.

Mr Duncan is not thought to have seen the sub-committee report, although sources say he has had outline discussions on its conclusions with one of the sub-committee members. Neither members of the board nor the company is making any comment ahead of today's meeting at the company's headquarters in Dublin.

Indications last night were that there may be no clear outcome to the meeting. Mr Duncan may decide to ask for some time to consider his response to the latest developments and to the sub-committee report. However, much will depend on the views of the various board members, who will meet under chairman Mr Noel Hanlon.

Mr Duncan joined the VHI two years ago from Irish Life. He is believed to be on a five-year contract with the health insurance company. He is not a member of the company board, but would normally be present for many meetings as the senior executive at the company.

A report drawn up by a committee in 1994, chaired by Mr David Kennedy, recommended the VHI chief executive be a member of the board. However, this recommendation was not implemented. It also said the board should be enlarged to 10 members. In the event the Minister, Mr Noonan, appointed seven new members to bring the total to 12.

The Kennedy report the other members of the committee were former Irish Life executive Mr Bob Willis and Judge Catherine McGuinness - also called for a clear distinction between the role of chairman and chief executive and said that the role of the chairman should be strictly non-executive.

It said that if these recommendations were not followed it would be "a recipe or disruption of the business process". Many of these issues have had to be revisited in the report to be considered today. The sub-committee's recommendations comes as the VHI tries to shape up to face a new era of competition, with British company BUPA due to start offering products in Ireland by the end of the year.

The company has also faced criticism for regular increases in premiums ahead of inflation and must face the crunch issue of how to pay for new medical technology.

. The members of the VHI board are: Mr Noel Hanlon (chairman) Ms Sheila Brazil, Mr Paul Coulson, Ms Ann Fitzgerald, Mr Phil Flynn, Dr John Keane, Ms Suzanne Kelly, Mr John, McMenamin, Mr John O'Connor, Mr Michael O'Keefe, Ms Lucy Pugh and Ms Clare O'Connor.