Paddy Burke (Fine Gael)

A very important point was raised by Senator Maurice Hayes on the role of the directors and the distinction between executive and ordinary directors. Consider a family business mainly run by a husband, who does so in an executive capacity. His wife may be involved in a non-executive capacity and may not know what is going on in the company. There would be requirement on her to familiarise herself with the accountancy practices. The majority of people in business do not understand the financial projections and assessments their accountants make at the end of the year. I have yet to meet business people who understand the accounts, apart from accountants who are running businesses themselves. No matter how much education they got, they would still not understand the complexities of accountancy procedures, company law, etc.

Executive directors on boards should not be treated as non-executive directors. Senator Maurice Hayes, for example, who brings his expertise to Independent Newspapers, may not know anything about the financial management of the business.