Ireland unveiled a new statutory corporate governance code for banks and insurers on Monday to bring 'fresh blood' into boardrooms and prevent a repeat of the excessive risk-taking that precipitated the country's financial crisis. "It's time to bring fresh blood into the board room, which brings more challenge, asks more awkward questions and devotes more time to assessing risk," Matthew Elderfield, the country's financial regulator, said in a speech showcasing the new code.
The statutory code lays out minimum standards for all banks and insurers operating in Ireland and additional requirements for so-called "major institutions", which would include any lender with a significant retail presence such as Bank of Ireland, AIB and Irish Life & Permanent.
Under the new rules, which come into effect from January 1 2011, the boards of major institutions must have a minimum of seven directors and a minimum of five in all others. The role of chairman and chief executive must be separate and there are limits on the number of directorships a director may hold.