asked the Minister for Industry and Commerce if, in view of the apparent success of German industry, he will consider the introduction of the German system of two-tier boards of management.
Ceisteanna—Questions. Oral Answers. - Two-tier Management Boards.
41.
The system of two-tier boards modelled on the German system has been proposed in the draft EEC fifth directive on harmonisation of company law. The draft directive is, of course, subject to change before adoption. When it is adopted, Irish company law will have to conform to its provisions, but I do not propose to make any changes in the law regarding boards of companies until I know the final requirements of the directive.
Has the Minister any idea when this directive might come into effect?
It is very difficult to forecast, particularly at the moment because we have all seen examples in recent months of things which we have expected to happen quickly in the Community being slowed up. It is difficult to predict firmly. It is unlikely that there will be real progress in under one year. That is a guess but that is probably the order of the time. The Deputy will be aware that with something as complex as company law it would be foolish and wasteful of time and energy to introduce changes in law which we would subsequently have to change soon afterwards. It seems prudent to await at least much more clarification even if we have not got final adoption of the fifth directive before we proceed. It will not be very long and, of course, it does not prevent us from making changes. Changes in company law would make these things obligatory but there is no reason for either public or private companies— by that I mean State or private enterprise companies—not to innovate, not to try out different forms of worker representation in the meantime irrespective of when it becomes compulsory. I would personally be in favour of such an arrangement.
Will the Minister agree that we need not necessarily depend on EEC regulations in this matter, or are we bound to comply with those and if modifications of them were to be introduced here would this violate the Treaty or the EEC regulations—in advance, I mean?
No. We could certainly do things now. There are two matters: one is what companies do and there is also the question of the application of the fifth directive. When that directive is actually adopted—and I give an estimate of a year or so—it will then be binding on us, but it will be of a general kind which will permit the experiences of different national industries to express themselves in slightly different forms. We shall not have an absolutely identical structure everywhere. We could certainly make some progress pending the adoption of the fifth directive and pending the question of a major reform of our company law.