Ireland introduces Corporate Governance Code
September 25, 2024
Euronext Dublin has launched the Irish Corporate Governance Code, which introduces a set of principles that highlight the importance of good corporate governance for achieving long-term success.
The launch follows a recent consultation, which was launched in July, that received 22 responses from stakeholders, including Minerva Analytics, with most expressing support for Ireland establishing its own code.
The code introduces principles and provisions covering five areas of governance: board leadership and company purpose, division of responsibilities, composition, succession and evaluation, audit, risk and internal control and remuneration.
The code is designed to help companies demonstrate, through their reporting, how their governance contributes to long-term success and broader objectives.
The code also provides a flexible framework, which allows companies to either comply with the guidelines or explain their alternative approaches.
This flexibility ensures that companies can tailor their governance practices to their specific circumstances while upholding transparency and accountability.
The localised code offers increased flexibility to adapt and evolve with changes in the corporate, legal and economic landscape to ensure that governance standards remain relevant and effective for the Irish market.
Traditionally, Irish companies have followed the UK Corporate Governance Code. However, with Irish securities increasingly oriented towards European trading and post trade, along with Brexit and the recent UK review of listing and corporate governance, Euronext saw this as a timely opportunity for Ireland to have its own Irish code.
The UK updated its Corporate Governance Code in January, focusing mainly on how boards manage internal controls. These revisions aimed to help support the growth and competitiveness of the country and its appeal as a place to invest.
The code will apply to financial years commencing on or after January 1, 2025.
Last Updated: 26 September 2024