Home Knowledge Update on New Requirements for Company Reporting & Corporate Governance

Update on New Requirements for Company Reporting & Corporate Governance

In last month’s Legal News, we reported that the 2006 EU Directive on Company Reporting was signed into law on 18 November 2009.  The Regulations require all companies with securities traded on a regulated market to prepare an annual corporate governance statement.  The Regulations did not contain any transitional provisions and so became effective immediately. 

There was some debate as to whether financial statements for year ends prior to the enactment of the legislation which would be signed after the enactment of the legislation would have to include a corporate governance statement.  Chartered Accountants Ireland have now received Senior Counsel’s opinion that the Regulations came into full force with effect from 18 November 2009, and that they affect all financial statements (including reports of directors and auditors) prepared or in the course of preparation on or after that date, regardless of whether the financial period to which they relate has expired.

We understand that the Department of Enterprise, Trade and Employment is investigating the possibility of introducing an amending statutory instrument which will include transitional provisions for the introduction of the Regulations. 

The Irish Funds Industry Association has produced template corporate governance statement wording which can be included in financial statements for fund companies to satisfy the requirements of the Regulations.