Paul Coghlan (Fine Gael) | Oireachtas source

I warmly welcome the Minister of State, Deputy Sherlock, to the House and thank him for his comprehensive overview of this Bill, which is fairly comprehensive itself. I got a fright when I saw the explanatory memorandum because it is nearly the same size as the Bill. I do not have much to say simply because I paid attention to the Minister of State while he was speaking and cannot disagree with anything he said. I recognise that many years of effort went into this Bill and that the Company Law Reform Group did great work over that period. It is a necessary consolidation measure which deals with the Companies Acts 1963 to 2013. It restructures and qualifies the law while maintaining compliance, standards and other necessary safeguards. It will make company law more understandable and simpler without removing safeguards. The inclusion of a coherent set of legislative provisions in one Act will beneficial for competition and for Ireland, as well as those who work in the various kinds of companies concerned.

The measures contained in the Bill have been subjected to rigorous examination over a prolonged period. Like many of my colleagues, I am familiar with private limited companies from my experience as a sole trader. I welcome that it will now be possible for private limited companies to operate with one director, who will not have to bother with a separate memorandum and articles of association. Equally, I welcome the Bill's provisions on companies limited by guarantee, which might be limited by £1 or €1 in the cases of charities, clubs and other such entities. The simplification that the Bill provides is necessary.

As the Minister of State noted, the rationale for the Bill is to improve Ireland's competitive position as a location in which to do business and to modernise and reform the law. It is also important for our reputation that the corporate enforcement regime ensures compliance with the law. As far as I can see, all the safeguards are in place but we will have an opportunity on Committee Stage to make further amendments. However, given that more than 400 amendments were made to the Bill in the Dáil, I do not think there will be much for us to do in that regard. The broad community of stakeholders in company law will greatly welcome this legislation. Its 1,400 heads and general scheme dealing with 17 separate Acts and older reforms will simplify the operation of company law while preserving sufficient safeguards for members and creditors. The Bill will bring tangible benefits to a broad range of ordinary businesses.

I welcome the introduction of a procedure whereby private limited companies will be able to convert to other forms of company, including in particular a public limited company. As public limited companies only form 1% of the overall sector, it is important that we give so much time and attention to private limited companies. We will consider these issues further next week and I do not want to delay the House further. I appreciate the Minister of State's efforts and the amount of time he has devoted to the Bill. I look forward to engaging further on Committee and Report Stage. I commend the Bill to the House.