Code aims to ensure commercial and non-commercial State bodies meet the highest standards of corporate governance.
The Minister for Public Expenditure and Reform Paschal Donohoe TD, today (Wednesday 17 August 2016) published a revised and updated Code of Practice for the Governance of State Bodies, which has been agreed by government.
This revised and updated document is designed to ensure that both commercial and non-commercial state bodies meet the highest standards of corporate governance.
It provides a framework for the application of best practice and is intended to take account of developments in respect of oversight, reporting requirements and the appointment of board members.
The code is based on the underlying principles of good governance: accountability, transparency, probity and a focus on the sustainable success of the organisation over the longer term.
The updated Code of Practice for the Governance of State Bodies is based on 4 key pillars:
The updated code is split into a suite of documents comprising the main code, as well as more detailed documents setting out its requirements as follows:
A balance has been struck in the updated code between the need for strong accountability and the requirement to support the appropriate autonomy of the state body under the legal framework and the environment within which it operates.
Publishing the code, the Minister for Public Expenditure and Reform, Paschal Donohoe TD, said:
Corporate governance best practice in the wider public and private sectors in Ireland and internationally has evolved since 2009 such as:
A number of reference documents have been updated and published since then such as the Financial Reporting Council’s 'UK Corporate Governance Code' (2016), CIPFA and IFAC’s 'International Framework, Good Governance in the Public Sector' (2014), OECD’s 'Principles of Corporate Governance' (2015).
These developments have been taken account of in the current update of the Code of Practice for the Governance of State Bodies.
The code is intended to be a living document and will evolve with best practice. It is effective from 1 September 2016 and is available on the Government Accounting website .