Irish Nationwide Demutualisation

[whatsmoney]

Hi.
Is there any evidence to suggest that the reason INBS management was delaying on demutualising was due to 'hiding books'/mismanagement?
Seeing as we all lost out on circa 15k, and the top man seemed to get away with a nice pension, well, could the members bring a case against board of management for loss of windfall?

 

[sunnygirl]

It does seem so unfair that savers who expected to benefit with windfall from demutualisation get nothing, zilch, while fingers walks away with large pension etc.,
Its just typical though of how things happen in Ireland, with bonuses, large salaries & extraordinary pensions paid to bankers while ordinary small shareholders who held shares in the banks now have a pretty worthless investment on their hands.

 

[mtk]

Great point
Personally i have wondered why "new" boards have not considered suing previous boards . There is a precedent in case of equitable life in the uk the new board did try but think they failed at the very end.
Also why no class action type suit by shareholders of the main banks ? perhaps no solicitor would touch it ?

 

[Brendan Burgess]

The current board of the Irish Nationwide indicated at the AGM that it was reviewing the books in detail and that it is not planning any legal action. I took from this that it has not discovered anything irregular over which legal action could be taken. I have no doubt that if they discovered something illegal, that they would take such action.

There is no facility for taking class actions in Ireland.

I was a shareholder in AIB. I can't think of what case I could take? Incompetence? I suspect that it would be pretty pointless anyway. Even if the directors were made in some way liable for the losses in share value, their assets would not cover very much. I am quite sure that any legal case would take years and cost far more than the assets of the people being sued.

There are various enquiries by the Gardai, the Financial Regulator and the ODCE into Anglo Irish Bank. I don't know if they are investigating any other bank or its directors.

Brendan