Dara Calleary (Mayo, Fianna Fail) | Oireachtas source

I thank the Senator for raising this issue. As he said, and as we all agree, a fit-for-purpose company law framework is an essential part of enabling business to not only conduct its business but to thrive and prosper. It provides business certainty. It enables entrepreneurs to take appropriate risks. It supports the growth of enterprise and assists in job creation. Crucially, it must also serve to protect employees, company members, creditors and consumers by establishing relevant and appropriate safeguards. As mentioned by the Senator, the Companies Act 2014 was a landmark legislative project. As this Act represents a world-class company law code, I understand the importance of the need for it to be reviewed regularly.

Since 2020, the Companies Act has been amended three times, most recently in the context of the establishment of the Corporate Enforcement Authority, CEA, which is an agency of my Department, on 7 July 2022. The authority's functions are set out in the Companies Act 2014 and include promoting compliance with company law, investigating instances of suspected breaches of company law and taking proportionate, robust and dissuasive enforcement action in response to identified breaches of company law. A well-stocked enforcement toolbox is vital to ensure that the CEA can continue to meet the challenges faced in investigating and prosecuting breaches of company law. The CEA has been conferred with significant enforcement and investigative powers.

As already stated, the Companies Act is reviewed regularly. This is to ensure that the original objectives remain valid and are being achieved. To that end, my Department is seeking views on a proposed companies (corporate governance, enforcement and regulatory provisions) Bill 2023. The primary focus of the latter will be on four areas of company law, namely, corporate governance, company law enforcement, company law administration and corporate insolvency. A public consultation was launched on 8 May, with members of the public invited to express views on the specific proposals outlined in the proposed legislation.

New powers and other enhancements for the CEA and also for the Irish Auditing and Accounting Supervisory Authority, IAASA, and Companies Registration Office, CRO, are matters that are actively being considered for inclusion in the proposed Bill to allow it to strengthen the State's capability to meet the challenges faced in investigating and prosecuting alleged breaches of company law. It is important to stress, though, that where it is believed that there are indications of breaches of the Companies Act 2014 under any section, a complaint should be made directly to the CEA, which will then investigate it. However, I encourage the Senator to take part and make his submission to the review that is under way.