Business and professional bodies yesterday gave a mixed welcome to the British-based Financial Reporting Council's (FRC's) latest corporate governance initiative.

The FRC published a new combined code on corporate governance this week.

It called for new definitions of the role of boards, chairmen and non-executive directors, plus tougher and more open procedures for appointing directors, which it said should be taken from wider pools of candidates.

It also recommended that the performances of boards, committees, individuals and directors be formally evaluated, and said that directors should have to go through professional development.

The Institute of Chartered Accountants in Ireland's chief executive, Mr Brian Walsh, said the Government should reconsider its Companies Bill, which imposes a range of new legal liabilities on directors, in the light of the proposals.

"The FRC has published a code of practice, whereas in Ireland the Tánaiste is intent on legislating for best practice corporate governance," he said.

He added that the new auditing and accounting supervisory body that will be established under the Act should determine best practice.

The Institute of Directors (IOD) said the code was in line with what the body had already advocated as best practice. Chief executive Ms Susan Thornber said the IOD's centre for corporate governance had consistently advocated a similar approach to director appointments and professional development.

However, the Association of Chartered Certified Accountants (ACCA) said the code ignored individual shareholders and other stakeholders. Mr Rory Acton, head of ACCA Ireland, said it contained too many reference to large shareholders.

"These are only institutions which only hold shares on behalf of others and, therefore, do not have a direct beneficial interest in companies' success," he argued. "It is a pity the interests of real shareholders have largely been ignored."