Members of Irish Nationwide have endorsed resolutions which allow the Government to invest between €1.2 billion and €2 billion of State money into the building society.
EBS members have also voted in favour of changing its rules to enable the Government to invest capital in the society.
At a meeting in Dublin, Irish Nationwide members were highly critical of the management of the organisation, which will see 80% of its loans transferred to the National Asset Management Agency.
At its Dublin meeting in Dublin, EBS chief executive Fergus Murphy told members its future would be seriously threatened if it did not receive capital.
It was no surprise that Irish Nationwide members backed resolutions put to them today. In reality, they had no choice due to huge losses following the organisation's disastrous commercial property lending.
One member, Mark FitzPatrick, said he could not see how the State would ever get back its investment. Another member, Brendan Burgess called on the board to consider winding up the society. Chairman Danny Kitchen said merger talks were underway with EBS but there had been little progress so far.
Mr Kitchen said former chief executive Michael Fingleton had not repaid his €1m bonus. He added he continued to hope Mr Fingleton would fulfil the obligation he made to repay it.
Merger talks at 'early stage' - EBS chief
At the EBS meeting, chief executive Fergus Murphy said that although EBS's position in relation to NAMA and land development was proportionately smaller than that of other financial institutions, fresh capital was still needed. He said the first of its land and development loans would go to NAMA on February 12.
He said that if the resolutions at today's meeting were not approved, it is likely that EBS would have to be fully nationalised.
Mr Murphy also said discussions with Irish Nationwide about a stronger mutual financial institution were at a 'very early stage' and would not start in earnest until the New Year. EBS has 450,000 members.
The measures being voted on today will confer significant rights on the Finance Minister in recognition of the capital investment being made, including majority voting rights.
Before voting, members expressed concern that this would give 'unreasonable and disproportionate' power to the Minister. EBS chairman Philip Williamson said the building society had not yet agreed the precise terms and conditions attached to those shares. He said the board would do its best to see that the members are represented on the board.
Members also expressed concern about any future link with Irish Nationwide, saying that EBS's high standards should be maintained if there is a merger.
