The Irish Medical Organisation has said it would have gone into liquidation if it had been forced to payout the €25m its former chief executive was entitled to.
Its outgoing president, Dr Paul McKeown, said that the payout "would have been fatal".
Delegates at the IMO annual conference are debating a series of motions in the aftermath of the controversial €9.7m retirement package for former CEO George McNeice.
Claims that the pay arrangements were widely known have been rejected at the conference.
Dr McKeown told delegates in Killarney that he hoped Mr McNeice would co-operate with an independent review that was being set up.
He said he was "disgusted" at the attempts to justify what he termed "excessive pay arrangements".
He also questioned the timing of comments attributed to a spokesman for Mr McNeice, coming at the start of the conference.
Earlier, Dr McKeown said former president Professor Joe Barry signed the contract for Mr McNeice in 2004.
Prof Barry has told RTÉ News that he looks forward to the external review.
He said the retrospective review had been organised and was happening fairly soon.
Dr McKeown said that Prof Barry was chairman of the IMO's remuneration committee, but did not appreciate the ramifications of the contract.
He described the signing as a "procedural matter" after Dr Cormac Macnamara had negotiated it, but died some time after.
Speaking on RTÉ's News at One, Dr McKeown described the contract as a major mistake and a lack of oversight.
A spokesperson for Mr McNeice has said that details of his remuneration package were not a secret and that people within the union should have known.
Dr McKeown said when he was on the IMO management committee he was not aware of the contract details.
He said there was no sense of catastrophe in the union and the results and recommendations from an external review should be known during the second half of the year.
Meanwhile, the IMO has passed an emergency motion on the Croke Park II agreement urging all members to vote No in the union's ballot.
It further says that should ICTU's Public Service Committee accept the proposals on 17 April, the IMO will not be bound by the outcome and its council will consider all options at that time.
Abortion will also be discussed at the conference.
Two AGM motions on abortion will call for support for regulation for abortion services where there is a real and substantive risk to the life of the mother and for abortion where a woman becomes pregnant due to a criminal act or where there is a non-viable foetal abnormality.
Non-consultant hospital doctors will highlight what they say are dangerously long working hours.
GPs will warn Minister for Health James Reilly against plans for further pay cuts to their fees for seeing medical card patients.
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