Ivor Callely (Fianna Fail)

I extend a warm welcome to the Tánaiste, particularly in so far as she is here in connection with this legislation.

My understanding is that this Bill is robust in its accommodation and has certainly been activated by the proactiveness of the Tánaiste in recognising the need to have thorough and tough legislation in this area. I congratulate her on her approach to the Office of the Director of Corporate Enforcement in seeking what legislative improvements are required in the company law area, her sphere of responsibility. I am delighted to note the Bill deals with three such aspects, one of which is the transparency of loans by a company that is a licensed bank to its directors and those connected with them. It recognises that in this regard the current situation differs, regardless of whether it is a licensed bank. The Bill provides for disclosure requirements, as the Tánaiste outlined, concerning directors, connected persons and other disclosures in the accounts and in the pre-annual general meeting statement. The legislation also provides a specific right of access by the Director of Corporate Enforcement to the statutory register of loans to directors and connected persons so that he can take enforcement action if necessary. All in all, that principle, which is contained in detail in the Bill, is merited and welcome.

The second principle contained in the Bill is strengthening the enforcement of company law. The Tánaiste has gone into great detail in outlining the relevant sections of the Bill that will assist in that regard. They make it an offence for directors not to comply with the Bill's disclosure provisions regarding loans to directors and connected persons, and regarding material interests of directors in company contracts. The Bill modifies a number of the existing provisions of the Companies Act 1990. The Tánaiste's speech specified the reasons for the various measures. I welcome the robust nature of the legislation, but one must express a certain amount of caution that we are not going too heavily or too far.