Áine Collins (Cork North West, Fine Gael) | Oireachtas source

I too welcome the opportunity to speak on this Bill. I assure Deputy English that the committee looks forward to the autumn and relishes the opportunity to go through this Bill section by section because we know how important it is.

The focus of this Government and particularly the endeavours of the Minister for Jobs, Enterprise and Innovation, Deputy Bruton, is to ensure that everything possible is done to create an environment for business to prosper. It is now well accepted that government does not create jobs but an effective government and Minister create the environment for job creation. The Minister has worked consistently over the past two years to increase our competitiveness as a country, to demystify systems that create uncertainty, to examine our bureaucracy and costs for professional services, all in an effort to encourage people to get involved in enterprise and job creation. Company law is a fundamental block to building any business. The simpler and more comprehensible it is the more people will participate. This Bill is the largest substantive legislation dealing with company law since the foundation of the State. It will bring significant benefits to companies of all types throughout the country and will add greatly to the Government's drive to make Ireland the best small country in the world in which to do business.

Until now company law has been incorporated into 16 Companies Acts which date from 1963 to 2012. I know from my own experience as an accountant and having studied this that it was a huge issue for small businesses and small practices. The situation has been a nightmare for ordinary business people, especially SMEs who have not had the in-house experience to understand this legislation. As well as being a nightmare for entrepreneurs the situation was a bonanza for professionals whose input was necessary to interpret the relevant parts of any of these 16 Bills meant for SMEs. Not only did it add substantial costs to businesses but because of the complexities it added to business people's anxiety because it was difficult for them to understand their responsibilities as owners and directors of SMEs.

The Bill consolidates the existing 16 Companies Acts in one substantive Act. The most common type of company in Ireland, a private company limited by shares, will now for the first time in Irish company law be placed at the centre of this legislation. All the law which applies to this common type of company which represents up to 90% of all companies registered in Ireland will be contained together in parts 1-15 of the Bill. This law will be set out logically to follow the life cycle of a company, starting with the provisions governing corporations followed by sections which apply to the ongoing operation of the company before dealing with provisions which apply to the closing down or winding-up of a company. The main provisions in the Bill which simplify the whole process for private companies limited by shares are that only one director is required. The company will not be required to hold a physical AGM. Under the old system a company had to adhere to many unnecessary procedures to comply with the law. The constitutional requirement is simplified such that when the Bill is passed a company will have the same legal capacity as a sole trader. This will aid the establishment of a variety of commercial transactions and reduce compliance overheads. Private companies will be able to engage in mergers and divisions. Under current law there is no provision for two companies to merge. I welcome the new rules on audit exemption because this is a huge cost for companies. Directors' responsibilities will be clearly set out and simplified. All offences under company law will be streamlined.

Most of the provisions in this Bill deal with SMEs. The changes are very significant and will make it easier to become involved in business and for business to expand and provide jobs. This is just part of the Government's drive to create the type of business environment that will encourage our own entrepreneurs and create a feel-good factor for business generally. It will enhance the emerging reputation of this country as being one of the best places in the world to do business. I commend the Bill to the House.

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