Irish Stock Exchange Publishes Additional New Rules In Relation To Corporate Governance - Irish Listed Companies Required To Comply Or Explain Against The New Irish Corporate Governance Annex In Addition To The UK Corporate Governance Code

The ISE has published new Listing Rules (“the Rules”) which require Irish listed companies to comply or explain against additional corporate governance provisions which arise from the recommendations contained in the report on Compliance with the Combined Code on Corporate Governance by Irish listed companies (“the ISE/IAIM Commissioned Report”)¹. These Rules, contained in a new Irish Corporate Governance Annex, supplement the existing provisions which require Irish listed companies to comply or explain against the requirements of the UK Corporate Governance Code².

The new Rules are effective immediately, therefore Irish listed companies with accounting periods commencing on or after tomorrow, 18th December 2010, will be required to comply or explain against the Irish specific corporate governance provisions. The requirement to comply with the UK Corporate Code is already in place, having applied to Irish listed companies with accounting periods beginning on or after 30th September 2010.

Commenting on the additional Rules, Mike Duignan, Head of Market Supervision at the ISE, said “the Irish Corporate Governance Annex, which supplements the UK Corporate Governance Code, implements the recommendations of the ISE/IAIM Commissioned Report. Irish listed companies are subject to the best internationally recognised corporate governance code and can further demonstrate their commitment to high standards of corporate governance by meeting the requirements of the new Rules, which are designed to assist them in their ongoing communication with investors and the market.”

¹The ISE/IAIM Commissioned Report, released in March 2010, was commissioned by the ISE and the Irish Association of Investment Managers (IAIM) and chaired by Professor Niamh Brennan.

²The UK Corporate Governance Code, formerly known as the Combined Code, is published the Financial Reporting Council (FRC) in the UK and is widely regarded as best practice internationally and a benchmark for corporate governance standards. Irish listed companies have been required to either follow the Code, or explain how else they are acting to promote good governance, for some years.