Owners’ Management Companies: A Concise Guide for Directors, published by Chartered Accountants Ireland and The Housing Agency, identifies 10 considerations for directors of the organisations that manage the shared spaces and services of multi-unit developments such as apartment buildings and housing estates. Increasing numbers of people in Ireland live in apartments and houses that are part of multi-unit developments, relying on common areas, or shared amenities and services. Under Irish law, an owners’ management company (OMC) is required to legally own the common areas and be responsible for their upkeep on behalf of its members, who may be owner-occupiers or landlords. Between 2002 and 2016 the number of apartments in Ireland rose by 85%.  In 2019, planning permissions in Ireland for apartments exceeded those for houses for the first time. This high level of growth is expected to continue for some time to come. OMCs do not act for commercial gain, but are custodians of the physical, built environment in which people live. Most directors of OMCs are volunteers. However, they have clear responsibilities and fiduciary duties and they are responsible for compliance with various legislation and regulation, including company law (if incorporated) and the Multi-Unit Development Act 2011. An OMC director must act in the best interests of the company while having regard to the interests of all its stakeholders. At times, it can be complex work; OMC directors are often required to deal with service providers, and professional advisors such as accountants, auditors, and solicitors. They can also interact with resident associations, regulators and government agencies. Published in May 2021, Owners’ Management Companies: A Concise Guide for Directors identifies good governance practice in 10 key areas for the directors of OMCs: 1.            Directors’ duties 2.            Board effectiveness 3.            Performance versus conformance 4.            The company constitution and register of members 5.            Finances, cash and debtors 6.            Company accounts and statutory audit 7.            The role of the company secretary 8.            Outsourcing 9.            Annual general meetings 10.          Dispute resolution A copy of Owners’ Management Companies: A Concise Guide for Directors is available to download from the Chartered Accountants Ireland Governance Resource Centre. You can watch the webinar launch of the Owners’ Management Companies: A Concise Guide for Directors by clicking here. Niall Fitzgerald Head of Corporate Governance & Ethics at Chartered Accountants Ireland   

Plethora of standards and frameworks results in “wild variation” in consistency and reliability of information  Global standards for sustainability reporting critical for sustainable corporate governance and to avoid “greenwashing”  Institute hosts all-island conference with An Taoiseach and Minister Diane Dodds on how boards can embed sustainability within their organisations 22 April 2021 - Chartered Accountants Ireland has reacted to European Commission proposals to amend the current EU Non-Financial Reporting Requirements Directive (NFRD). The proposals form part of a package of measures announced by the Commission to improve the flow of money towards sustainable activities, with a view to making Europe climate neutral by 2050. They are an important step in the EU’s objectives for sustainable corporate governance. Certain companies are required under current EU Non-Financial Reporting Requirements Directive to report how sustainability issues influence the performance, position and development of the company and certain information about the company’s impact on society and the environment.  Commenting, Níall Fitzgerald, Head of Ethics & Governance in Chartered Accountants Ireland, said “Existing EU guidelines have not led to a fundamental improvement in the quality of disclosures by companies. The desire to act is there among company directors and stakeholders, who are committing investment and resources to embed sustainable practices across their organisations.  “Right now, there is a plethora of standards and frameworks that companies can apply for sustainable reporting. The lack of unified global standards means that the availability, consistency, and reliability of information varies wildly across jurisdictions, some more onerous than others. This leaves organisations open to the charge of ‘greenwashing’.  In 2020, Chartered Accountants Ireland, in response to public consultations on the European Commission’s review of NFRD, and on sustainability reporting from the International Financial Reporting Standards Foundation, noted that a common standard would resolve many of the problems with the comparability, reliability and relevance of information being reported by companies. Fitzgerald continued  “It is encouraging to see steps being taken towards more comparable and consistent global sustainability reporting standards. The Commission have stated that the development of EU sustainability reporting standards will also contribute to the global standards development process. However, we need clarity as to who the Commission will engage to develop these standards, as they have to date only suggested this may be the European Financial Reporting Advisory Group (EFRAG). “We also welcome the proposal to digitally ‘tag’ reported sustainability information. This will ensure information is more readily identifiable, providing greater transparency and confidence. A social contract exists between business and the public, and with more companies making public sustainability pledges, these standards will ensure they are held to account for commitments and that empty promises are exposed.”   ENDS  For more information:  Jill Farrelly  PR & Communications Manager  Chartered Accountants Ireland   jill.farrelly@charteredaccountants.ie     Tel: 087 738 6608 Notes to Editor     About Chartered Accountants Ireland     Chartered Accountants Ireland is Ireland’s leading professional accountancy body, representing 29,500 influential members around the world and educating 7,000 students. The Institute aims to create opportunities for members and students, and ethical, sustainable prosperity for society. An all-island body, Chartered Accountants Ireland was established by Royal Charter in 1888 and now has members in more than 90 countries. It is a founding member of Chartered Accountants Worldwide, the international network of over one million chartered accountants. It also plays key roles in the Global Accounting Alliance, Accountancy Europe and the International Federation of Accountants.