Junk the two-director residency rule

This would be a good time for Ireland to reform its two-director residency rule. Ideally it should do this before its new LP law comes in. The CBI’s ICAV register shows director capacity can be a problem in Ireland; the arrival of many PE funds will make that worse. Irish residency rules make no sense in the Zoom era anyway.

In the current climate it is unlikely that there will be a flood of private equity funds setting up in Ireland once its revised limited partnership law is in operation, at least in the short term. But there will at least be some that will take advantage of the new law - and almost certainly easily enough to make the case for changes to the country’s two-director residency rule even more compelling that it is already.

Like every other fund jurisdiction, Ireland has had to suspend its standard attendance rules for board meetings. Board meetings everywhere have gone online. The silver lining to the dark cloud of Covid-19 is that the industry has done a remarkably good job at adapting to the crisis by using Skype, Zoom and other such platforms.

For more on this story see the August edition of The NED.

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