Timmy Dooley (Clare, Fianna Fail)
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Question 300: To ask the Minister for Jobs, Enterprise and Innovation the legislation being prepared to ease the burden of compliance for small companies with charitable status and modest turnover; and if he will make a statement on the matter. [26938/11]

Richard Bruton (Dublin North Central, Fine Gael)
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Entities with charitable status are governed by the Charities Act 2009. They are subject to the regulation of the Charities Regulatory Authority and answerable to their stakeholders, shareholders and funders. Many charities, typically, charities which formed themselves as companies, do so as companies limited by guarantee (CLG). Due to their public membership structure they cannot avail of an audit exemption.

The Company Law Review Group (CLRG) 2009 Report examined the issue of extending audit exemption to companies limited by guarantee (CLG). It made the following recommendations:

"(i) Subject in each case to consultation with the Minister for Community, Rural and Gaeltacht Affairs and the charities regulator, the audit exemption regime contained in Part III of the 1999 (No. 2) Act be extended to such class or classes of CLG which are charitable organisations (within the meaning of the Charities Act 2009) so as to bring them into alignment with charitable organisations that are not companies, provided that 10% of the members with voting rights should be able to require an audit.

(ii) The audit exemption regime contained in Part III of the 1999 (No. 2) Act be extended to all CLGs which are not charitable organisations, subject to a veto right, by any one member of the company, and further subject to the requirement that audit exemption in respect of the following year, shall be an item on the agenda of the annual general meeting."

The recommendations of the CLRG in this matter will be considered in the context of the Companies Bill. Drafting of the Bill by the Office of the Parliamentary Council is expected to be finalised in the next 12 months. The CLRG recommendations contemplate that any proposals in this matter will be subject to consultation with the Department of the Environment, Community and Local Government and the Charities Regulator.