The concept of directors of Irish companies having to provide compliance statements was first introduced by the Companies (Auditing and Accounting) Act 2003 but, due to widespread opposition to perceived onerous obligations on directors, no commencement order was ever issued for the relevant provision. The rationale for the introduction of compliance statements was to foster a culture of compliance by creating a greater sense of accountability and responsibility among company directors and by developing good systems of internal controls within companies.

The Companies Act 2014 (the "Act") now requires directors' compliance statements to be included in directors' reports in the financial statements of certain qualifying companies submitted to the Irish Companies Registration Office.

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