The financial service regulator IFSRA has directed the Irish Nationwide Building Society (INBS) to table a resolution at its AGM to commence demutualisation before the end of 2004.
A group of disgruntled shareholders led by Mr Shane Hogan and accountant Mr Brendan Burgess have led a campaign motion calling on the board of INBS to make a commitment to demutalise the society on a specific timetable.
Last December Mr Hogan tabled a resolution calling on the board of INBS to commence the demutualisation process. The board rejected this resolution, claiming that it was not legally valid.
But IFSRA has now accepted that the resolution complies with the Building Societies Act and has directed the board to table the resolution at its upcoming AGM.
The shareholders group is also nominating Mr Burgess as a director of Irish Nationwide.
In a statement issued today, Mr Burgess said that as well as representing members' interests he would ensure that current chief executive, Mr Michael Fingleton, will receive no further payoff on demutualisation other than the windfall he will get as an ordinary member of the society.
"He has passed retirement age and has been very well rewarded over the years," Mr Burgess said.