Michael Ahern (Cork East, Fianna Fail)

Deputy Eamon Ryan raised the issue of the liability of a guarantor. Section 8 substitutes a new section for section 43 of the Investment Funds, Companies and Miscellaneous Provisions Act 2005. Essentially, the purpose of this amendment is to limit the potential liability of a guarantor to the content of a prospectus in so far as it relates to the guarantor or the guarantee given by him or her. It is not an open-ended situation where a guarantor can be sued over issues outside the prospectus or the guarantee. This amendment will undoubtedly be discussed further on Committee Stage.

Deputy Connaughton raised the issue of the change to mandatory computer records and effectively questioned whether security could be guaranteed. Some companies are already operating in this manner since the uncertificated securities regulations were made in 1996 and no particular difficulties have been brought to my or my Department's attention.

Deputy Fleming highlighted issues relating to the types of companies which can benefit from the audit exemption. He quoted from a letter I sent to him two years ago in which I stated the matter was being considered by the company law review group. I raised the issue a number of years ago with my officials and the company law reform group. The group is examining the matter because there are a number of perspectives to be examined in respect of voluntary bodies. Where funds are involved, the perspective will differ from that of a family-owned company or a company with shareholders. This area needs to be examined because overregulation and the burdens placed on people working in a voluntary capacity, as Deputy Finneran noted, can drive them away. It is very important to achieve a balance and I hope this matter will be sorted out in due time.

Speakers have mentioned qualified accountants. There is a difference between a qualified accountant and auditor or accountant-auditor. The term "accountant" is being examined and hopefully in the not too distant future a definition will be produced to protect the public from people setting up as accountants who do not have the qualifications to make them competent in this area.

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