Consultation launches on Irish corporate governance code

July 4th, 2024


The consultation on the Irish corporate governance code has launched as Ireland works to align itself with international standards.

The code is designed to provide a framework setting out the expectations of transparency and accountability for companies and will apply to any company listed on Euronext Dublin.

It was developed by a working group which reviewed research on key governance issues to determine their continued value and completing environment scanning to identify any relevant policy initiatives to incorporate into an Irish Code.

The working group said it aimed for the code to reflect best practice in corporate governance but not introduce unnecessary or potential conflicting obligations.

The new code will replace the UK corporate governance code, which has applied to Irish companies due to the close links between the Irish and UK stock exchanges.

However, as a member of the European Union, Ireland is part of the evolving Capital Markets Union, under which the European public company regulatory infrastructure continues to be developed, which no longer apply in the UK.

The Irish code is still based on the UK code to ensure Irish listed companies will continue to meet the internationally recognised standards set out in the UK, but establishing a specific code will allow the guidance to be tailored to Irish companies.

In a consultation paper, Euronext said: “The principles of good governance are dynamic, evolving to meet the changing needs and expectations of the business environment. The adoption of the Irish Code is not the culmination but the commencement of an ongoing process to ensure that governance practices in Ireland remain robust, relevant, and attuned to the distinct characteristics of the local market.”

Last Updated: 4 July 2024