A DAIL committee this week heard some conflicting viewpoints from a number of building societies on legislation governing the transition of a society from one solely owned by its members to the status of public company.

At present a society cannot sell off more than 15 per cent of its shares or agree a takeover for five years following the public listing of its equity. Proposed amendments to the Central Bank Bill, if ratified, would enable societies to enter into joint venture arrangements or agree a takeover after flotation.

The Irish Nationwide Building Society has long argued that these regulations constitute an unfair restriction and has been lobbying for change, raising the conjecture that the Nationwide could be the latest to step outside the ranks of mutuality. However managing director Michael Fingleton coyly stated that the Nationwide was merely addressing competitiveness and seeking "the same options as other financial institutions".

The society, he emphasised, had not yet taken a decision to go public. It is understood that one other building society is supporting the case for change. However the consensus of opinion is that the Government will concur that the status quo should be maintained.

One of the bigger societies committed to mutuality, the EBS, is believed to be strongly opposing change. Many of the smaller societies fear legislative moves would increase pressures on them to abandon mutual status and expose them to takeover. They believe mutuality buttresses the movement's founding philosophy of providing a low cost financial service solely geared to customer needs.

Despite the limitations of mutuality, Irish Nationwide is a highly profitable society returning 5 per cent higher profits of £22 million last year. It has also made a bid to purchase the TSB Bank and previously expressed an interest in buying the State owned ACCBank.