ExibitA: Institutional/Legal Framework of Holding Multiple directorships: And International Comparison




The Council of Institutional Investors (2004) suggests that directors with a full-time job should not sit on more than two other boards and current CEOs should only serve on one other board.

The Combined Code (Financial Reporting Council, 2003) recommends that full-time executive directors should not take on more than one non-executive directorship in a FTSE 100 company.

The Irish Law, Section 45 of the Companies (Amendment) (No. 2) Act, 1999 introduces a limitation on the number of companies of which a person can be a director, or shadow director, to 25. Directorships in companies within the same group of companies are aggregated for the purpose of this requirement.