Seanad debates
Wednesday, 16 April 2003
Companies (Auditing and Accounting) Bill 2003: Second Stage.
People are genuinely concerned about issues, including compliance. Some of the interpretations of this legislation that I have seen ascribed to various people in print are incorrect. Directors are required to do a number of things within the Bill's compliance provisions. They have to tell investors, shareholders and consumers that a company is compliant and can be relied upon. They are not required to search under stones or in every corner of a company. The most honest board of directors can be scuttled by a dishonest middle or senior manager. I would make a distinction, however, between responsibility and accountability. Directors are responsible for certain things but, if they go wrong, someone else may be held accountable. Under the provisions of the Bill, directors have to ensure that accounting standards are met, that structures are in place to ensure compliance and that they are satisfied that those structures are effective. That is all they will have to do, but I am appalled to think that is considered to be new because I always believed that was the function and duty of company directors.
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