Dublin City Council yesterday assumed full control of the functions and assets of Temple Bar Cultural Trust (TBCT) after the company's directors resigned at the request of its sole shareholder, city manager Owen Keegan.

Last April, TBCT’s board requested that the council begin the process of winding down the trust and taking over its functions. Mr Keegan told city councillors last month this process was now being “accelerated”, leading to yesterday’s move.

"The necessary transitional arrangements have been progressed by Dublin City Council," the council said, adding that city arts officer Ray Yeates, who had been acting chief executive, was returning to his full-time post with immediate effect.

Mr Yeates had been appointed to fill the gap created when former chief executive Dermot McLaughlin departed on secondment to be project director of Derry UK City of Culture. He has since left with a substantial severance package.

The council has set up a Temple Bar project team reporting to assistant city manager Brendan Kenny, who will in turn report to the council's south-east area committee, as well as its arts and culture strategic policy committee.

Following a competitive public tender, consultancy Genesis has been commissioned to carry out a “comprehensive consultation process” with stakeholders in the Temple Bar area on developing a common “cultural, physical, social and economic vision”.

Cllr Mannix Flynn (Ind), who had been one of the council-nominated directors, said he had not formally resigned because he believed a number of “legacy issues” in relation to corporate governance needed to be sorted out first.

In legal terms, the company remains in place until it is fully dissolved by legislation expected later this year. In the meantime, the council said it would ensure “all necessary legal and company procedures and regulations ... are fully complied with”.

Mr Keegan thanked the outgoing board, saying the “very serious legacy issues” it had to deal with were “very challenging”.