asked the Minister for Industry and Commerce whether he proposes any policy initiatives with regard to providing greater freedom of information to all shareholders in business; and if he will make a statement on Government policy in this regard.
Written Answers. - Availability of Information.
31.
Policy in this area is reflected in the Companies (No. 2) Bill, 1987, which is at present before the Seanad. This Bill contains detailed provisions about the disclosure of interests in shares of companies and about transactions entered into by company directors.
Part IV of the Bill deals with the disclosure of interests in shares. The existing requirements relating to holdings of directors and secretaries are being considerably extended to ensure that full information as to the true ownership of the shares is made available. In addition, new requirements are being introduced in relation to disclosure of significant shareholders by all beneficial owners of shares in a company.
The 1987 Bill also contains new provisions concerning disclosure of particulars of certain transactions with directors. These provisions go to great lengths to make sure that as full as possible a disclosure of individual transactions by directors is made in the company's accounts.
I am hopeful that the combined effect of these provisions will be that shareholders are adequately informed about the real ownership of their company and about the range of transactions being entered into by the directors of the company, so that they are in a position to make an informed decision about their investment and participation in the company.
In addition to legislative developments on the domestic front, our membership of the EC has meant that the Government's policy in relation to company law matters has, to a certain extent, been influenced by developments at EC level. For example, adoption of the Fourth Company Law Directive on Accounts, which was implemented in Ireland via the Companies (Amendment) Act, 1986, means that the annual accounts of all limited companies, whether public or private must be published. Thus, shareholders now have access not only to the accounts of their own company but also to the accounts of the company's competitors. The Seventh Company Law Directive, which is due for entry into force by January 1990, and which to a large extent complements the Fourth Directive, requires the publication of consolidated accounts by groups of companies. Finally, the Third and Sixth Company Law Directives, which were implemented in Ireland in 1987, provide for the disclosure to shareholders of considerable information in the context of certain mergers and divisions of public limited companies.