Jan O'Sullivan (Limerick East, Labour)
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Question 82: To ask the Minister for Enterprise, Trade and Innovation his plans to publish the legislation promised by the Department of Finance in an interview with a newspaper (details supplied) to clamp down on crony capitalism; to restrict cross-directorships and to prevent one person fulfilling the dual role of chair and chief executive of any company; and if he will make a statement on the matter. [36388/10]

Batt O'Keeffe (Cork North West, Fianna Fail)
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As regards credit institutions and insurance companies, which come within the aegis of my colleague the Minister for Finance, I understand that the Financial Regulator hopes to finalise deliberations on a new corporate governance regime for entities in these sectors over the coming weeks. I also understand that issues relating to cross-directorships and the dual role of Chair and Chief Executive will be among the matters addressed in the new regime. In addition, these issues are also being considered by the European Commission as part of a possible corporate governance initiative at EU level on financial institutions generally.

In relation to Irish listed companies (those trading on the main market of the Irish Stock Exchange), the corporate governance code that applies on a "comply or explain" basis has recently been revised following the financial crisis. Among the changes introduced is a provision recommending that all directors of listed companies should be subject to annual election by shareholders. The revised code continues to provide that the roles of Chairman and CEO should not be exercised by the same individual.

In the area of company law, the Companies Consolidation and Reform Bill currently being drafted 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. Currently, 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. Neither do the Companies Acts prevent a person fulfilling the dual role of chair and chief executive of a company. This would in my opinion be unworkable for smaller companies. The Government is committed to ensuring that our corporate governance regime for the corporate sector generally, accords with best international practice.