Regulatory update – Ireland

Starting from January 1, 2025, the Corporate Governance Code applies to companies incorporated in Ireland and listed on Euronext Dublin. These companies need to comply with the new Code, although those that are also listed in the UK have the option to follow either the Irish or the UK Corporate Governance Code.

The introduction of a tailored Irish Corporate Governance Code brings more clarity to issuers and investors, ensuring that changes in UK governance are thoroughly assessed for relevance before being adopted by Irish companies. The aim is to provide a local approach that offers flexibility to adapt to shifts in the corporate, legal, and economic landscape, ensuring that governance standards remain effective and aligned with the needs of the Irish market.

The “comply or explain” approach, from the UK Code, has been adopted by the Irish Code. This means that in its annual report, the company must state how the principles and provision of the Irish Code have been applied or explain the non-compliance. Also, the new Code entails principles and provisions regarding six key areas:

• Board Leadership
• Company Purpose
• Division of Responsibilities
• Succession and Evaluation
• Audit, Risk, and Internal Control
• Remuneration

Good corporate governance is essential for businesses navigating today’s complex landscape, guiding them to maintain the highest standards of integrity, transparency, and accountability.