Dáil Éireann Debate, Tuesday - 30 November 2021
216. Deputy Catherine Connolly asked the Minister for Public Expenditure and Reform if CEOs of statutory organisations may hold board and or committee positions in other organisations in this or another jurisdiction; and if he will make a statement on the matter. [58772/21]
View answerThe position of CEOs of statutory bodies is in the first instance dependent on any specific provisions in the legislation establishing those bodies, and may differ between organisations.
More generally, in respect of board appointments, the Guidelines on Appointments to State Boards published by my Department in 2014 states “Consistent with best corporate governance practice it is advisable that no member of a State Board should serve more than two full terms of appointment or should hold appointments to more than two State Boards”.
My Department provides a template contract for the appointment of CEOs which contains the following relevant provisions :
For appointments of COs to non-commercial State Bodies the relevant clause is 4.7:
"You shall, unless prevented by ill-health, devote your whole time and attention during business hours to the discharge of your duties and to the business of the Agency and shall do all in your power to promote, develop and extend the business of the Agency and shall at all times and in all respects conform to and comply with the directions and regulations made by the Agency commensurate with your position as CEO and shall not without the previous consent of the Agency in writing:
a) engage in any other profession or business, or
b) be concerned with or interested in any other business of a similar nature to, or competitive with, that carried on by the body."
For appointments of CEOs to Commercial State Bodies the relevant clause is 7.2:
The Chief Executive shall not:
1. without the previous consent of the Company in writing be concerned with or interested in any other business of a similar nature to or competitive with as determined by the Board, that carried on by the Company;
2. work for or have any other interest in any other company or business or undertake any other activity which might interfere with the proper performance of his/her duties or compete or conflict (or be perceived to conflict) in any way with the Company’s activities provided always that nothing contained in Section 7.2 of this Contract shall preclude the Chief Executive from holding or being otherwise interested in any shares or other securities of any company where such securities are for the time being quoted on any recognised Stock Exchange (the “Shares”) and the interest of the Chief Executive therein does not extend to more than one-hundredth part of the aggregate amount of such securities and provided that nothing in Section 7.2 shall preclude the Chief Executive, with the previous consent in writing of the Board, from holding private investments that may give rise to a conflict in interest.
