Ireland Strengthens Corporate Governance Rules

by Jason Gorringe, Tax-News.com, London

22 February 2007

Michael Ahern, Ireland's Minister for Trade and Commerce, has announced that he has made an order commencing Section 37 of the Companies (Auditing and Accounting) Act, 2003 (No 44 of 2003) with effect from 1st March 2007.

Section 37 of the Companies (Auditing and Accounting) Act, 2003 amends Section 194 of the Companies Act, 1990 which relates to the duty of auditors. The new measure extends the responsibilities of auditors by requiring, if requested, additional information to be provided to the Director of Corporate Enforcement in relation to any reported possible indictable offence under the Companies Acts.

“The present provisions will contribute to good corporate governance which is essential to a healthy operating environment for the business of the Country, and, indeed the economy as a whole”, Minister Ahern observed on signing the order.

Ahern also took the opportunity to commend the Office of the Director of Corporate Enforcement on having prepared revised guidance in relation to auditor reporting obligations, jointly with the Consultative Committee of Accountancy Bodies and the Auditing Practices Board, in preparation for the commencement of this provision.

“This revised guidance will help clarify for auditors just what the new legislative requirements entail and how they are to be complied with," Ahern noted.

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