Seán Sherlock (Cork East, Labour) | Oireachtas source

This section contains the form of directors compliance statement as recommended by the Company Law Review Group. Having analysed the provisions contained in the 2003 Act, the group determined that such extra duties as set out would do little to increase compliance and merely result in an increase in red tape at considerable cost to Irish businesses. The set-up costs for a business were estimated at €90,000 and the ongoing annual costs at €40,000. A streamlined version of the directors compliance statement proposed by the Company Law Review Group removed the requirement that the statement include a declaration that the company had complied with all other enactments which could affect its financial performance. This was found to be the most burdensome aspect of the statement and also the least relevant since companies were already legally obliged to comply with all Acts of the Oireachtas and their inclusion in the directors compliance statement did not add substantive duties.

A wide majority of the Company Law Review Group, that is, more than 80% of the members, including members representing the Financial Regulator and other public bodies, agreed to a more balanced version of the directors compliance statement. There is a strong European Union impetus towards less unnecessary regulation to make EU businesses more competitive. The amendment would create unjustifiable and disproportionate costs for Irish businesses without adding value in terms of protection. It would disadvantage Ireland competitively as it would move beyond other countries. The directors compliance statement, as it stands, has broad support. For these reasons, it is intended to preserve the directors compliance statement as it stands within the Bill. On this basis, I am not in favour of adopting the amendment.