Michael D Higgins (Galway West, Labour)
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Question 46: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the progress made with regard to preparation of the promised legislation to ban cross directorships and to prevent chief executives from becoming chairman of their companies; when she expects that the legislation will be published; and if she will make a statement on the matter. [27431/09]

Billy Kelleher (Cork North Central, Fianna Fail)
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These matters are being considered by me in the context of company law and by the Minister for Finance as part of his reform of the banking sector.

The Company Law Consolidation and Reform Bill is currently being drafted by the Office of the Parliamentary Counsel. It sets out the corporate duties of directors, company secretaries and auditors on a general basis across all sectors. The Bill will implement the recommendations of the Company Law Review Group in that the fiduciary duties owed by directors to the company will be stated in the new companies code.

At present company law does not prohibit cross directorships, whereby a person is a director of more than one company at the same time. The general position is that a person may not be a director of more than 25 companies subject to certain specific exceptions. Directorships of public limited companies (plcs) are not included in the limit of 25. Any consideration of a change in this position for the general cohort of companies operating in Ireland would need to take account of the contribution that non-executive directors make by imparting their mix of expertise and the cross fertilisation of ideas from other areas of the business community.

In relation to the issue of a chief executive becoming a chairman of the company, at present there is no prohibition in the Companies Acts that would prevent this taking place in the case of companies generally. However, this issue is dealt with on a "comply or explain" basis in the Combined Code of Corporate Governance that applies to companies whose securities are listed and traded on the Irish Stock Exchange. The "comply or explain " guideline requires companies to meet the best practice guidelines or explain publicly why not.

The Government and I are committed to ensuring that our corporate governance regime for the corporate sector generally accords with best international practice. We will take account of the lessons which emerge from current enquiries and reviews arising from recent developments and we will address, as appropriate, any concerns in this area including by way of legislation if necessary.