FOLLOWING A board meeting of Carlow Arts Centre Ltd which owns the Visual Centre for Contemporary Art and The George Bernard Shaw Theatre, Carlow Town Council have been requested to convert €1.5 million from the current €9,337,881 shareholders loans to share capital.
The remaining €7,837,881 will be registered as a charge on the property. The request has been made in order to strengthen the Carlow Arts Centre Ltd balance sheet and to address an issue which arises under Section 40 ( 1) of the Companies (Amendment) Act 1983.
However the discrepancy that shareholders loans had not been converted into share capital already was only discovered during an internal audit of the company.
Cllr Walter Lacey who is a director of the board assured the council that it was in the best interests of the council to approve the conversion.
Town clerk Michael Brennan told the council, 'I can't comment as to why this has not been done until now but moving forward it is a good, prudent thing to do.'
The application was approved unanimously by the Council.