A vote of no confidence in four of the directors of ISME, the small firms lobby group, is expected to be tabled a national council meeting next Wednesday. Meanwhile, ISME chairman Mr Seamus Butler has confirmed that former ISME chief executive Mr Frank Mulcahy is on paid leave while an investigation into certain matters within the organisation is ongoing.

Mr Butler confirmed he had met members of the Garda Bureau of Fraud Investigation in relation to inquiries into the organisation yesterday. It is understood the matter concerns a management development programme.

Sources said last night the Bureau was only contacted after a national council meeting had been called to vote no confidence in the directors of the board of ISME Ltd. This meeting did not take place because chairman Mr Butler was unavailable. Mr Butler said the agenda for next week's national council meeting was currently being drawn up and he would be unable to say if the motion calling for the directors to resign would be included, until today. Nor would he be able to name them until today.

It is understood that the four directors concerned are Mr Terry Hobdell, Mr Eoghan Hynes, Ms Irene Bergin and Mr David Dixon. They are directors of ISME Ltd, which manages the assets of the organisation. There was speculation yesterday that Ms Bergin, company secretary of ISME Ltd, had resigned. Mr Butler claimed he was unaware of this. He also rejected suggestions that he was on the point of resigning.