We're currently watching with interest a number of pieces of crucial Irish and EU corporate legislation. Here's an update on the current state of play of our top five.
1. Screening of Third Country Transactions Bill 2022
Ireland's proposed new law on foreign direct investment screening was introduced in the Oireachtas in September 2022 and considered by the Dáil Select Committee on Enterprise, Trade and Employment on 25 January 2023, where it was amended. Once the final stages are completed in the Dáil, the Bill will move to the Seanad. The legislation is expected to be operational during 2023.
2. Competition (Amendment) Act 2022
The Act amends Ireland's merger control regime and gives new powers to the Competition and Consumer Protection Commission (CCPC). It was signed into law by the President in June 2022 and its commencement is anticipated in March/April 2023.
3. Directive on cross-border conversions, mergers and divisions
The Directive amends the existing EU law on cross-border mergers and introduces new legislation on cross-border conversions and divisions. Ireland has missed the deadline of 31 January 2023 for transposition, but is working to deliver new regulations in the coming months.
4. Corporate Sustainability Reporting Directive (CSRD)
The CSRD enhances the nature and volume of social and environmental information that companies have to report and extends non-financial reporting requirements to a wider range of companies, including SMEs. Member States must transpose CSRD into national law by 6 July 2024. The Department of Enterprise, Trade and Employment has begun work on implementation and is engaging with stakeholders.
5. Corporate Sustainability Due Diligence Directive (CS3D)
CS3D proposes to introduce a new corporate due diligence obligation, requiring in-scope entities to address the human rights and environmental impacts of both their own operations and those of their entire value chain. All eyes are on the European Parliament's Legal Affairs Committee, which is expected to vote on its draft report in March. This will form the basis of the Parliament's negotiating position. Negotiations on the final text are expected to begin after May 2023.
