Resignation And Approval Process For Fund Management Company Directors

INTRODUCTION

The composition of the boards of Fund Management Companies¹ ("FMCs") may change several times during the life of the FMC for a variety of reasons. Rotation after a number of years on the board of the FMC may be provided for in the FMC's constitutional document; a director may have agreed to abide by the Central Bank of Ireland's (the "Central Bank") Fitness and Probity requirements (the "F&P Requirements") upon appointment and subsequently not meet the F&P Requirements; there may be a decision made to include additional skills sets or to diversify the board; or change to board composition may occur for personal reasons. While familiarity with the FMC, its objectives and delegates is most certainly beneficial to a FMC this must be balanced with the fact that change to board composition over time is widely held to ensure that independent thought and challenge is maintained throughout the lifetime of the FMC.