Micheál Martin (Cork South Central, Fianna Fail)

I share the sentiments expressed by the Deputy. I wish to put on the record the main company law provisions in Ireland dealing with such companies. Companies that fail and re-engage in trading under a new name are addressed under the Companies Acts 1963-2005 and, in particular, under the provisions of Part 5 of the Company Law Enforcement Act 2001. Under section 56 of the latter Act, a new reporting regime to the Director of Corporate Enforcement was introduced in respect of all insolvent liquidations, under which the circumstances of the insolvency and the conduct of the company's directors are scrutinised and reported on by the liquidators. Liquidators of such companies are legally obliged to bring proceedings for the restriction of directors unless relieved of this obligation by the Director of Corporate Enforcement. To date, in excess of 650 company directors have been restricted. Powers are also available to the director to pursue directors of insolvent companies which have not been placed into liquidation. While we accept that business failure is an unfortunate part of life, the changes introduced in Part 5 of the Company Law Enforcement Act 2001, in particular, are intended to address problems and issues connected with business failure, including what has been referred to as the "phoenix" syndrome.

Company law is also under continuing review, particularly through the work of the company law review group. I will undertake to revert to that group within the Department to examine this case and ascertain whether lessons can be learned about plugging loopholes. A review of the legislation will determine whether we need to amend it further.

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