Feargal Quinn (Independent)

I move amendment No. 40:

In page 45, to delete lines 18 to 23 and substitute the following:

"(a) is, or was at any time during the year preceding appointment to the committee, an employee of the company concerned, or

(b) is an executive chairperson of the board of directors.".

I refer to the difficulty faced by companies, particularly if compliance legislation is enacted, in recruiting non-executive directors. For example, it is regarded as good policy to appoint a non-executive chairman. Such a person should be a member of an audit committee. On that basis, the word "executive" should be deleted. An executive chairman of a board would not be suitable but a non-executive chairman should be a member of the audit committee. It would be unhealthy if a non-executive chairman was not a member.

An individual who has left an executive position is a suitable candidate to work on an audit committee but barring him or her from taking up such a position for five years is excessive. While I propose that this should be amended to one year, I would be happy if an amendment was tabled to reduce the period to between one and five years. Executives have left their posts having held them for less than five years and they would be suitable to serve on audit committees.