Billy Kelleher (Cork North Central, Fianna Fail)

There is a defence system allowed under section 383 of the Companies Act 1963. The purpose of this section 40 is to make that provision more robust, to make people accountable and answerable. Previously, there was a necessity to prove the officer knowingly or wilfully authorised or permitted the default in question but now the onus will be on the officer and there is a defence allowable under section 383 of the Companies Act 1963. I hope this clarifies the issue for the Senator.

In response to queries from Senator Callely about consultation with stakeholders, the urgency of introducing this legislation meant that only limited consultation was possible. I can confirm that with regard to loans to bank directors issues, the Office of the Director of Corporate Enforcement, the Department of Finance and the Financial Regulator were the main offices consulted. With regard to amendments to Part 2 of the 1990 Act and other provisions granting access to registers, the Office of the Director of Corporate Enforcement was also consulted.

The European Commission, the Companies Registration Office, the Department of Finance and the Revenue Commissioners were consulted about provisions regarding the Irish registered non-resident companies. Deputy Coghlan also referred to the McDowell report of 1999. It has to be acknowledged that when that report was published initially only 13% of companies were in compliance with the Companies Registration Office but that percentage has now increased to 90%. On foot of that report the Government set up the Office of the Director of Corporate Enforcement.