Shareholders in Irish Life and Permanent have voted against a motion allowing the Government to put State money into the company.
The motion was put to them at an Extraordinary General Meeting in Dublin this morning.
Chairman Alan Cook said there was no incentive for shareholders to vote in favour of the motions. Shareholders applauded the outcome of the vote.
One shareholder said they had depended on the shares to support them in their old age. Another asked 'how did we get into this mess?'
Speaking after the EGM, Mr Cook said he understood the reactions of shareholders.
He said he would make shareholders' views known to the Minister for Finance.
Asked if he would consider his own position, Mr Cook said he was determined to see the situation through.
Govt to proceed with recapitalisation
Minister for Finance Michael Noonan has said the Government has to proceed with the recapitalisation of IL&P despite today's vote.
Speaking on RTÉ's News at One, Mr Noonan said he could understand how shareholders felt because the motion would have meant their stake would be wiped out.
Mr Noonan said there was a legal route the Government could follow, but the recapitalisation would proceed.
Meanwhile, a representative of the Malta-based hedge fund Scotchstone has been elected to the IL&P board.
Piotr Skoczylas called on all shareholders to support his cause and said that he would challenge any Government takeover in court.
He said shareholders had put their confidence in him and he hoped to be on the board soon.
His appointment will be subject to the approval of the Financial Regulator.
