Credit Union Act 1997

Resolutions relating to appointment and removal of auditors.

117

117. (1) Subject to subsection (2), a resolution at a general meeting of a credit union—

( a) nominating for election as auditor a person other than a retiring auditor,

( b) providing that a retiring auditor shall not be nominated for election,

( c) removing an auditor before the expiration of his term of office, or

( d) nominating for election as auditor a retiring auditor who was appointed by the directors to fill a casual vacancy,

shall not be effective unless notice of the intention to move it has been given to the credit union and to the F248 [ Bank ] not less than 28 days before the meeting at which it is to be moved.

(2) Where, after notice of the intention to move such a resolution has been given to the credit union, a general meeting of the credit union is called for a date less than 28 days after the notice has been given, the notice, although not given within the time required by subsection (1) shall be deemed to have been properly given for the purpose of that subsection.

(3) Subject to subsection (4), a credit union shall give its members notice of any such intended resolution at the same time and in the same manner as it gives notice of the meeting or, if that is not practicable, it shall give them notice, the period of which has been approved by the F248 [ Bank ], of the intended resolution by advertisement in at least two appropriate newspapers, within the meaning of section 80 (5)(a) , published in the State and circulating in the area in which the credit union’s registered office is situated.

(4) A notice under subsection (3) shall not be given within 7 days of the date of the receipt of notice of the intended resolution under subsection (1).

(5) On receipt of notice of an intended resolution under subsection (1), the credit union shall forthwith—

( a) if the resolution is a resolution mentioned in paragraph (a), paragraph (b) or paragraph (d) of that subsection, send a copy thereof to the retiring auditor;

( b) if the resolution is a resolution mentioned in paragraph (c) of that subsection, send a copy thereof to the auditor proposed to be removed.

(6) Where notice is given of such an intended resolution as is mentioned in any of paragraphs (a), (b) and (c) of subsection (1) and the retiring auditor or the auditor proposed to be removed, as the case may be, makes in relation to it representations in writing to the credit union (not exceeding a reasonable length) and requests their notification to the members of the credit union, the credit union shall, subject to subsection (8), (unless the representations are received by it too late for it to do so)—

( a) in any notice of the intended resolution given to members of the credit union, state the fact of the representations having been made; and

( b) send a copy of the representations to every member of the credit union to whom notice of the meeting is sent (whether before or after the credit union receives the representations).

(7) Subject to subsection (8), and whether or not copies of any representations made by him have been sent as mentioned in subsection (6), the auditor concerned may require that, without prejudice to his right to be heard orally, the representations made by him shall be read out at the meeting at which the intended resolution is to be moved.

(8) Subsections (6) and (7) shall not apply if, on the application either of the credit union or of any other person who claims to be aggrieved, the F248 [ Bank ] is satisfied that compliance with the subsections would diminish substantially public confidence in the credit union or that the rights conferred by it are being, or are likely to be, abused in order to secure needless publicity for defamatory matter.

(9) An auditor of a credit union who has been removed shall be entitled—

( a) to attend the annual general meeting of the credit union at which, but for his removal, his term of office as auditor of the credit union would have expired;

( b) to attend the general meeting of the credit union at which it is proposed to fill the vacancy occasioned by his removal;

( c) to receive all notices of, and other communications relating to, any such meeting which a member of the credit union entitled to notice of the meeting is entitled to receive; and

( d) to be heard at any such meeting or any part of the business of the meeting which concerns him as a former auditor of the credit union.

Annotations:

Amendments:

F248

Substituted (1.05.2003) by Central Bank and Financial Services Authority of Ireland Act 2003 (12/2003), s. 35(1) and sch. 1 pt. 24 item 80, S.I. No. 160 of 2003, subject to transitional provisions in s. 36 and sch. 3 para. 26.