Michael Ahern (Cork East, Fianna Fail)
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I propose to take Questions Nos. 388 and 389 together.

The main provision of the Companies Acts dealing with cases of trading while unincorporated is Section 381 of the Companies Act 1963 (as amended). Under this section, it is an offence for a person to trade or carry on a business under a name or title of which "Limited" or "Teoranta" is the last word, unless duly incorporated with limited liability.

Complaints relating to cases of this kind received by the Companies Registration Office are referred to the Office of the Director of Corporate Enforcement (ODCE) for attention. I am informed by the ODCE that it received 13, 26 and 43 complaints in 2004, 2005 and 2006 respectively in relation to alleged trading while unincorporated. A minority of this category of complaint related to trading as a limited company while struck off the Companies Register. ODCE does not track the aspect of trading pertaining to the person the subject of each such complaint.

I understand that it is ODCE practice to determine these complaints on an administrative basis. This means that the persons who are the subject of the complaints are either found not to be in breach of company law or where a breach is evident, that the persons in question take action to correct their non-compliance thereby obviating the need for possible legal proceedings. Such remedial action typically includes restoring the company to the Register of Companies or ceasing to represent the trading entity as a limited company. If the Deputy has information relating to particular companies trading while unincorporated I would encourage him to refer it to the ODCE for its consideration.