John Perry (Sligo-North Leitrim, Fine Gael)
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Question 73: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the requests for additional support that her Department has received from the Office of the Director of Corporate Enforcement since 2004; the details of those requests; the extra resources given to the Office of the Director of Corporate Enforcement for each year since 2004; if the Director of Corporate Enforcement has raised concerns with her regarding directors' loans since 2004; and if she will make a statement on the matter. [7428/09]

Mary Coughlan (Donegal South West, Fianna Fail)
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The Director of Corporate Enforcement submitted a request for additional staffing resources in 2005. The submission set out the areas where additional staff would be assigned across the Compliance, Detection, Enforcement and Insolvency areas of the Office. In total, 20 additional staff were sought. Following a review of this request, my Department agreed in 2007 to sanction an additional eight staff for the ODCE and the Garda Commissioner also sanctioned an additional Detective Garda. These additional staff have now been assigned to the Office. The Office's budgetary requirements have also been met in full each year. I have also provided additional financial resources in 2009 to meet the costs of the High Court inspection into DCC and related matters.

The following Table sets out the numbers of staff serving in the ODCE and expenditure for the Office for each year since 2004 (for 2009, the table includes the approved staffing complement and agreed budget estimate):

The Director indicated in 2007 that having integrated these additional staff, he would review his request for further extra staff and advise my Department at that stage of the results of that review. At this stage, there is no outstanding request for staffing resources from the Director. I have indicated to the Director that I will be sympathetic to any reasonable request for extra resources which he may need to complete the present investigation of Anglo Irish Bank.

Loans to directors that are contrary to the provisions of the Companies Acts have been a particular area of focus for the Director, and his Office has experienced considerable success in having illegal loans repaid. Further details are contained in its Annual Reports. Civil or criminal enforcement action has also been taken in suitable cases. For instance in 2008 following an ODCE investigation, the Director of Public Prosecutions successfully prosecuted a company director for wilfully breaching the restrictions on directors' loans in the Companies Act 1990 ("the 1990 Act"). This was the first prosecution in the area of directors' loans to result in a criminal conviction. Previous ODCE criminal prosecutions had concluded with the relevant District Court giving the defendants the benefit of the Probation Act.

In addition, the existence of directors' loans in contravention of the relevant provisions of the 1990 Act has on some occasions been one of the factors on foot of which the High Court has seen fit to restrict or disqualify company directors in applications brought by the liquidators of insolvent companies. However, so far as I am advised, no restriction declaration or disqualification order has ever been made on that basis alone.

In 2006, the Director asked my Department to modify the evidential burden for a company law offence under Section 40 of the 1990 Act. The matter was referred for detailed evaluation to the Company Law Review Group (CLRG) whose statutory function is to advise on companies legislation. In its 2007 Report, the CLRG recommended that further consideration of the ODCE proposal be postponed until a broader policy discussion on the area was concluded. I understand that while the Director accepted that recommendation, he still believes that this change is desirable.

In January this year, in light of events in the financial area, I asked the Director to consider whether any legislative improvements were necessary in the company law area. The Director's response is currently being considered by my Department in consultation with the Department of Finance and the Financial Regulator. I should point out that the Director has assured me that he is satisfied that he currently has the necessary powers to pursue his investigation into Anglo Irish Bank.