Irish Life & Permanent says it is in talks with its corporate lawyers to determine whether it needs to call an extraordinary general meeting of shareholders.
The move follows efforts by a group of shareholders seeking to change the €4 billion programme of recapitalisation at the country's biggest bank assurer, which involves the disposal of Irish Life to help shore up losses at Permanent TSB bank.
The shareholders need the support of holders of at least 5% of the issued share capital but claim to have the support of 14%. If successful, it is believed it would be the first time shareholders have forced a company to hold an EGM.
In a statement to RTE, Irish Life & Permanent said it was talking to its lawyers, but the calling of an EGM would depend on evidence that the shareholders had gathered sufficient support, and the legality of what was being proposed.
The shareholders, led by Malta-based investment fund Scotchstone Capital, are looking for an extension in the end of July deadline for the recapitalisation and the appointment of an investment bank advisor to review the process. Scotchstone says the paperwork is currently with the company.
Under current plans, IL&P's profitable life business will be sold off through either a trade sale or a public offering of shares, with an expectation that the proceeds will contribute €1.5 billion euro towards the recapitalisation required for the remaining Permanent TSB.
Thereafter, the Government would be required to invest a further €2.5 billion into Permanent TSB, effectively nationalising it.
Once IL&P has received enough EGM requests, it has 21 days to consider the matter and then another 39 days to hold the EGM.
That may not leave enough time to hold a meeting, as the deadline to complete the recapitalisation is the end of July. In those circumstances, the shareholders say they may mount a legal challenge.
