Maurice Hayes (Independent)

I am pleased that Government amendments have been tabled that ease the position of subsidiary companies in relation to audit committees and others. I wonder if the same applies here, as it would make a big difference. I am a director of three organisations, one of which is a large international company while the others are a regulatory body and a charity. As I stated on Second Stage, I would encourage the Minister of State to keep charities out of the ambit of this legislation and the Companies Act. This type of legislation is not suitable for charities and placing such requirements on them creates considerable trouble for them.

As a non-executive director, I welcome the thrust and intention of the Bill. I would find it difficult to make the declaration on areas other than those covered by the Companies Acts and tax law. While Senator O'Toole has explained the reasoning, this will make it difficult for people to be non-executive directors and deter them from taking up such positions. A few months ago I dealt with a company document which had to be done very conscientiously. With a 52 page document we received an 80 page document from legal advisers. I would be afraid we might create a cottage industry in which directors would feel the need to always be advised on these matters.

Obligations under the Companies Acts and tax law present no difficulty. However, paragraph (c) in the new proposal states: "any other enactments that provide a legal framework within which the company operates and that may materially affect the company's financial statements". This would cover areas such as health and safety, and equality law, not only in this country but also elsewhere. If there is a contingency that would affect the financial standing of the company, that should be picked up by accounting standards. There is an element of social engineering in this and trying to ensure compliance with equality, health and safety, environmental protection, etc., which are not strictly financial matters and could be dealt with elsewhere.