Institute of Directors in Ireland welcomes announcement by Financial Regulator
Date: 27 April 2010IoD welcomes consultation paper on corporate governance for the finance sector
The Institute of Directors in Ireland (IoD) has welcomed the consultation paper published today by Matthew Elderfield, Head of Financial Regulation, on the introduction of new corporate governance standards for the finance sector.
Maura Quinn, Chief Executive of the Institute of Directors in Ireland, said: “The IoD welcomes the consultation paper published today by the Financial Regulator. Today’s publication is a positive step in reform of the finance sector and we look forward to taking part in the consultation process.”
The proposals outlined today are in keeping with the combined code and will be essential to improving corporate governance standards in our financial and insurance institutions. With a wide ranging scope from minimum board size, to board reviews, to the requirement for individual committees, the proposals will ensure that there is proper and robust reporting and supervision in place across the sector.
In addition, limiting the number of directorships which a board member can hold will reduce the potential for conflict of interest and allow for members to commit the necessary time and effort to fulfil their responsibilities.
The recommendation that the role of the chief executive and chairman be separated is also a crucial element of good corporate governance as is the presence of non executive directors on each board to provide an independent and objective perspective.
Quinn continued: “What we now need to ensure is that those who sit on all boards are appropriately selected, fully qualified and trained for their position and the responsibilities that come with it. This is a necessary step to improve and strengthen corporate governance frameworks throughout Ireland.”
Ends
Click here to view the consultation paper
Click here to read the media coverage
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