Irish Stock Exchange Welcomes Report On Compliance With The Combined Code By Irish Listed Companies

The Irish Stock Exchange (“ISE”) welcomes the report on Compliance with the Combined Code on Corporate Governance by Irish listed companies (“the Report”) which was published today. The ISE is pleased with a key finding of the Report that there is a high level of compliance by Irish listed companies with the Combined Code1 (“the Code”). However, it is also clear from the qualitative assessment of annual report disclosures in the Report that there is a need for listed companies to examine and enhance the meaningfulness of their corporate governance disclosures. The Report’s recommendations should facilitate companies in achieving this and in delivering to emerging investor expectations.

Commenting on the Report, Mike Duignan, Head of Market Supervision at the ISE, said “The Report deals with one aspect of corporate governance, namely the Code. Good corporate governance is, of course, wider than that and requires companies to give appropriate regard to other aspects of corporate governance such as company law, strategy and ethics. In the coming weeks the ISE will be considering the findings and recommendations in the Report and how these can best be implemented in the Irish market. The ISE will then engage in a market-wide consultation in relation to the recommendations of the Report and this consultation will also consider amendments to the Code currently being proposed by the Financial Reporting Council in the UK. In addition, we intend to use the consultation process to address some broader governance issues, such as whether there should be a stand-alone Irish corporate governance code.”

Mike Duignan added that, “the ISE expects the Boards of listed companies to carefully consider the findings and recommendations in the Report. The Report provides some guidance on how they can enhance the corporate governance disclosures in their annual report, which should assist their ongoing dialogue with their shareholders and other market participants.”

Notes
The Combined Code on Corporate Governance (“the Code”) is published by the Financial Reporting Council in the UK. Irish listed companies are required to meet the Code on a “comply or explain” basis.