Ms Elaine Cassidy:

The Companies Bill which has passed Second Stage increases and codifies responsibilities on directors. The penalties for breaches of these in many cases have increased too. The ODCE, Office of the Director of Corporate Enforcement, has also been given additional powers, such as the power to wind up a company with a courts’ permission.

On the point made by ICTU of companies acting as a group and hiving off assets to another to avoid paying creditors and employees, section 600 will cover that. It is specifically designed to deal with cases where assets are split. The Bill provides a creditor can petition the courts to take moneys from the other related company to pay the debt of the insolvent one. The current legislation provides the amount for defining a creditor is one to whom a company is indebted in a sum exceeding €12,600. This has now been reduced to €10,000, a lower onus on the employee, accordingly.

The Companies Bill has been ten years in drafting. It has been a collaborative work with the Law Society, IBEC and the trade unions, as well as other interested parties. Considerable attempts have been made to balance the requirements to encourage enterprise with the strengthening of directors’ duties. Although the Bill is on Second Stage, the Department is still welcoming suggestions from interested parties. Since it was published in December, we have had hundreds of suggested amendments. All suggestions will be considered on Committee Stage in the autumn.