Grant Thornton calls for greater governance

In its latest annual Corporate Governance Review of Irish-listed companies,
Grant Thornton has found that half of the country’s publicly listed companies
are not fully compliant with the governance code.

Currently, full compliance with the code is not required under legislation,
which means that companies can ‘cherry pick” parts with which to comply. It is
voluntary for private companies.

Paul Raleigh, managing partner with Grant Thornton in Dublin said the code
was ineffective if certain key aspects are not required under law. At the bare
minimum, there should be a basic requirement for independent audit committees
supported by a framework of effective sanctions for non-compliance.

In addition, Raleigh said the chairman and chief executive of a company
should be directly accountable for good corporate governance and transparency in
financial reporting.

He is also calling for a limit on the number of public company boards on
which individuals can sit as non-executive directors.

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