Michael Ahern (Cork East, Fianna Fail)

Amendment No. 11 would effectively remove paragraph (c) of the definition "relevant obligations" in the new section 205E(1), which is being inserted into the principal Act by section 43 of the Bill. We had a long debate on the merits of this proposal on Committee Stage. I explained that this decision implements the recommendation 14.1 of the report of the review group on auditing and it reflects what directors of companies are obliged to do when preparing accounts. I remind the House that the provision only refers to matters that are material or which may materially affect a company's financial statements.

I will ask my officials to examine the wording in the new subsection 5(2), particularly in respect of directors giving their opinion, using their reasonable judgment, etc. This matter will be reviewed before the Bill is presented to the Dáil.

Due to the way that the exemption from the requirement to prepare a director's compliance statement is worded, as being available to a private company that is eligible for exemption from the requirement to have its accounts audited, a particular focus has been brought to bear on the thresholds applicable to such companies. In particular, the turnover threshold of €317,000 has been focused on.