Mary Coughlan (Donegal South West, Fianna Fail)

The meaning of the term "in default" in this section is set out in section 383 of the 1963 Act, which states:

For the purpose of any provision in this Act which provides that an officer of a company who is in default shall be liable to a fine or penalty, "officer who is in default" means any officer of the company who knowingly and wilfully authorises or permits the default, refusal or contravention mentioned in the provision.

Under that Act, an officer who is in default shall be liable to a fine or penalty. There is a clear determination. For the purposes of the section before the House, an officer shall be presumed to have permitted a default by the company unless he or she can establish that he or she took all reasonable steps to prevent it, or that it took place by reason of circumstances beyond his or her control. When we introduce the consolidation Bill, we will make sure all references are to "he or she". It is the duty of each director and the secretary of the company to ensure the requirements of the Companies Acts are complied with by the company. I assure the House that section 383 of the 1963 Act allows an officer to claim that a default took place by reason of circumstances beyond his or her control. That assurance can be given to an officer of a company. One has to get the balance right. One cannot allow lack of knowledge to be cited, mar dhea, as a reason. At the same time, one must bear in mind that those involved in smaller companies, such as family companies, do not necessarily deal with these matters on a day-to-day basis. I reiterate that people involved in companies should familiarise themselves with the law, even if they are not working within an individual company on a day-to-day basis. We need to emphasise to people that they should be aware of their responsibilities.