All eyes are on the Irish Stock Exchange (ISE) this week as it is anticipated that the proposed new Irish Corporate Governance Code (the Irish Code) will be published shortly. The ISE have completed their consultation on the Irish Code which is based on the new UK Corporate Governance Code (which replaced the Combined Code). The consultation paper indicated that the new Irish Code would come into effect for accounting periods starting on or after 13 September. However, the ISE have now stated that the more likely commencement date will be for accounting periods starting on or after 29 September 2010.
The Irish Code is addressed to companies with a primary listing on the Main Securities Market of the Irish Stock Exchange. It reproduces the provisions of the UK Corporate Governance Code and implements the nine recommendations arising from an ISE / IAIM report in March 2010 on compliance by Irish companies with the (then) Combined Code.
The main difference between the proposed Irish Code and the UK Corporate Governance Code is the focus in the Irish Code on the quality of disclosures by the directors. The Irish Code moves away from the use of standard wording by directors and emphasises the importance of meaningful and informative disclosures.