Small firms lobby group ISME has appointed a subcommittee to carry out a "root and branch" review of the organisation.

It follows a number of internal divisions within the group which culminated with its chairman's resignation earlier this month.

ISME's national executive met for two hours yesterday and its new chairman, Mr Seamus Butler, insisted the proceedings were amicable and positive. He said the sub-committee would report back in four weeks with its findings. Just 10 days ago, the executive council met and discussed the row between the chairman Mr Peter Faulkner and the chief executive Mr Frank Mulcahy, as well as a number of other issues. At that meeting Mr Faulkner tendered his resignation, saying that it would not be possible to rebuild the relationship between himself and Mr Mulcahy. The executive council comprises eight people, but there are 40 members on the national executive. The sub-committee which was elected yesterday to see how the organisation can be changed, does not include any executive council members, Mr Butler said.

He added that the sub-committee was looking at all aspects of the organisation and acknowledged that this included staffing structure, financing and administrative procedures. A number of allegations concerning the running of the organisation have been circulating in recent weeks, some through anonymous letters. Mr Butler said the sub-committee would be investigating them.