AIB has told shareholders that it will an extraordinary general meeting to approve a recently announced capital reorganisation on Wednesday December 16.
The meeting will vote on the plan to redeem €1.7 billion worth of preference shares issued by the Government at the time of the bailout in 2009.
It also also vote on the move to convert another €1.8 billion into ordinary shares at a loss to the State which owns more than 99% of the bank.
The bank's capital reorganisation comprises six main elements. Other elements of the plan include the bank consolidating its ordinary shares on a one for 250 basis. This will reduce the number of ordinary shares in issue to about 2.7 billion.
The Minister for Finance will also redeem the EBS Promissory Note issued to EBS in 2010.
AIB has also agreed to the potential issue of warrants of up to 9.99% of its ordinary share capital to the Minister for Finance at the time of any re-admission of the bank's ordinary shares to a regulated market.
Shares in the bank were down sharply again in Dublin trade today.
