Billy Kelleher (Cork North Central, Fianna Fail)

The Tánaiste and Minister for Enterprise, Trade and Employment gave an undertaking on Committee Stage to reflect on Fine Gael's proposal to amend section 5 by inserting new subsections 2(F) and 2(G) into section 20 of the Companies Act 1990. The essence of the proposal was to introduce timelines within which terminations and separations should be made once the proposed new extended powers of seizure had been employed. Contributors from all sides of the House supported such an approach during the Committee Stage debate. These timeframes also are the essence of the amendment I propose today and, in common with the amendment proposed by Fine Gael, the Government amendments provide for the following time limits. There will be three months to decide on the materiality of seized information and to separate material information from immaterial information. In addition, there will be seven days to return records which are found to be immaterial to the party from whom they were taken. Each of these time limits could be extended or reduced by the court.

Members will note the amendment also contains some additional features designed to ensure further the extended power of seizure operates effectively. Specifically, the proposed new subsection 2(I) provides for a specific right to adjust the prescribed timeframes by means of a ministerial regulation. It also will be noted that the directions that may be given by the court are spelled out in greater detail in the proposed new subsection 2(G). I believe this will be helpful to any court in the consideration of such applications as it might be asked to consider. Moreover, Members will note this subsection provides that before giving directions, the court shall have particular regard to any submissions made on behalf of the Director of Corporate Enforcement with regard to the progress of his investigations. A court direction order for return of records to the person from whom they were seized under this subsection also may include a condition allowing the Office of the Director of Corporate Enforcement to retake and retain possession of those records during a specific subsequent period. In other words, maximum flexibility is provided to the court in respect of the directions it can give.

Members also will note that the proposed new subsection 2(H) includes the ability for the court to hear matters other than in public. This could be especially important when the content of confidential company information is being discussed.

Amendment No. 5 proposes a new subsection 2(J), which will retain the ability of the Minister to make regulations to address any supplementary, consequential or incidental matters as may arise in the operation of these new provisions. I commend these amendments to the House.

The Government gave a commitment on Committee Stage that it would take on board the views that were being expressed by Fine Gael. While these amendments have gone further, they also incorporate everything that was requested by Fine Gael.