The Company Law Review Group’s (CLRG) review of the controversial Directors’ Compliance Statement (DCS) has been completed, and CLRG has now made its recommendations, which are expected to include significant revisions to the DCS, to Government.
Speaking on October 12th at the Institute of Chartered Secretaries and Administrations Annual Conference, Minister Michael Ahern told the audience that a decision on the future shape of the DCS is imminent. | | Dublin Castle |
Minister Ahern said, ‘Since the CLRG reported to me I have taken the opportunity to consider the package of measures they propose in detail, and I have made proposals to government in a way that will give us the corporate governance standard of a DCS without affecting costs significantly. I expect the Government to take a decision on a remodelled version of the DCS in the near future’.
The DCS, which was proposed in Section 45 of the Companies (Auditing and Accounting) Act 2003, requires the directors of a PLC or large private company to prepare a compliance statement setting out the company’s compliance with company law, tax law and other enactments materially affecting the financial statements. The company is required to report on its procedures for ensuring compliance and to review its statement annually.
Though enacted, 45/2003 has not been commenced, due to the uproar that greeted it. Concern was expressed amongst the financial services industry, both in the domestic and cross-border sectors, about the potential cost and competitiveness issues which the DCS may give rise to.
Based on this opposition, earlier this year, the CLRG was asked for its views on the proportionality, efficacy and appropriateness of the DCS. It is hoped that the CLRG’s recommendations respond to the industry’s concerns. |
