Willie Penrose (Longford-Westmeath, Labour)
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Question 107: To ask the Minister for Enterprise, Trade and Employment if he has plans to consolidate the Companies Acts in order to allow companies to better understand their rights and obligations in regard to company law; and if he will make a statement on the matter. [25372/07]

Micheál Martin (Cork South Central, Fianna Fail)
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The Company Law Review Group published its General Scheme of the Companies Consolidation and Reform Bill in July 2007. The Government subsequently approved the drafting of a Bill along the lines of the General Scheme and the Office of the Parliamentary Council is at present drafting the legislation. As the Office of the Parliamentary Council has indicated that its work on the Bill is expected to take a minimum of 12 months, the Bill is unlikely to be published before late 2008.

The proposed legislation will consolidate the existing 13 Companies Acts, dating from 1963 to 2006, as well as other regulations and common law provisions relating to the incorporation and operation of companies, into a single Act, comprising over 1,200 sections. In summary, the provisions cover the incorporation of companies, corporate governance, duties of directors and secretaries, financial statements and auditors, receivers, reorganisations and examinerships, windings-up and compliance and enforcement. The provisions are brought together in a coherent manner which will facilitate business people in incorporating and operating companies on a day-to-day basis.

The General Scheme also modernises company law to reflect modern business practice. Given that 90% of companies in Ireland today are in the form of a 'private company limited by shares', the General Scheme sets out all of the provisions relating to that type of company in sequential sections. In subsequent sections the provisions for the 'private company' are modified for other company types such as public limited companies (PLCs).

Furthermore, to promote compliance with the law and to protect investors and creditors, the General Scheme also sets out clearly the corporate governance duties of directors, company secretaries, auditors etc. The General Scheme also sets out the functions of the Companies Registration Office, the Office of the Director of Corporate Enforcement and the Irish Auditing and Accounting Supervisory Authority in ensuring compliance with the law and brings together the provisions relating to compliance and enforcement such as company investigations, compliance and protective orders, disclosure orders, disqualification and restriction of directors and prosecution, offences and evidential matters.