The passing of the Anglo Irish Bank Corporation Bill 2009 and the Dáil debate that accompanied it provides further detail on possible compensation for shareholders in the bank. So just what is now known? asks LAURA SLATTERY

QWhat does the nationalisation of Anglo Irish Bank mean for shareholders?

ATrading in shares in Anglo Irish Bank was suspended on the Dublin and London Stock Exchange before stock markets opened last Friday, the morning after the Government announced its plans to nationalise the bank. Minister for Finance Brian Lenihan said he would appoint an assessor to decide what compensation, "if any", would be paid to shareholders. Shares have now been transferred to the Minister, on commencement of the Act that passed through the Dáil on Tuesday.

QHow will the assessor decide how much, if any, compensation should be paid?

AThe Minister told the Dáil on Tuesday that any compensation will be "fair and reasonable". The assessor will consider a "wide range of factors" before making a recommendation.

The compensation, if any, will depend on the value of the bank as of January 15th and will be based on its “true financial state”, taking into account the underlying market value of its assets and the “extent of its actual, contingent and prospective liabilities at that date”.

This assumes that there will be no additional financial assistance, other than the Government guarantee already provided.

The assessor will take into account the quoted price of the shares on close of business on January 15th and the movements in that price during an appropriate period.

The assessor will also take into account any relevant information about the business on that date, whether publicly available or not, and whether Anglo, on that date, was “unable or likely to become unable to continue as a going concern in the short, medium or long term, or that there was a material risk of its not being able to do so”.

QWho will the assessor consult in making the decision?

AUnder the legislation, the assessor can accept submissions regarding the value of the transferred shares and "extinguished rights", from the Central Bank, the Minister for Finance (and if he requires, the National Treasury Management Agency) and any other person the assessor invites.

QWhat are "extinguished rights"?

ACertain employees and directors of Anglo Irish Bank may have held share options, or the right to buy shares at a later date. These rights have now been cancelled by the Minister.

QWhat will happen once the assessor has decided how much compensation should be paid?

AOnce the assessor's report has been finalised and agreed, it will go to the Minister, who will make a compensation scheme available within one month.

QCan the assessor's decision be appealed?

AYes. The assessor's calculation of how much compensation is due can be appealed to the Irish Financial Services Appeals Tribunal with a successful appeal required to establish "as a matter of probability" that there was a "serious error" in the determination.

A judicial review to the High Court will only be granted if it is a “substantial issue” and the application is made within one month of the assessor’s report to the Minister (or longer if there is a substantial reason why the application was not made within one month).

QWill the assessor's report be published?

AYes, shareholders will be able to see how the assessor arrives at his or her decision. However, the Minister may omit from the published report any material that "would disclose commercially sensitive information or would otherwise be contrary to the public interest".

QHow long will all this take?

AIt's difficult to say, but as an assessor has yet to be appointed, it could be some time. The legislation says that the Minister will "have regard to the public interest" when deciding whether it is an "appropriate time" to appoint the assessor.

As the Department of Finance currently has other matters keeping it busy, such as the recapitalisation of AIB and Bank of Ireland and the deteriorating state of the public finances, Anglo shareholders could be waiting months – or even years – to find out if they are due any compensation. If compensation is due, the assessor will decide if the payment of interest is appropriate or not. But any actual payment could be a long way off.