Written answers

Tuesday, 24 June 2014

Department of Jobs, Enterprise and Innovation

Corporate Governance

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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248. To ask the Minister for Jobs, Enterprise and Innovation the number of persons who currently are precluded from serving as company directors on foot of a direction from the Office of the Director of Corporate Enforcement; and if he will make a statement on the matter. [26714/14]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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The Director of Corporate Enforcement has no power to disqualify persons from acting as company directors. The Director may make an application to the High Court for a disqualification order but it is ultimately a matter for the Court to decide on whether to grant such an order.

The Office of the Director of Corporate Enforcement (ODCE) does not maintain records of the number of persons who are currently disqualified from serving as company directors, either on foot of ODCE applications or otherwise. However in its Annual Report each year, the ODCE publishes details of all disqualification orders made by the High Court in respect of civil and criminal cases taken by the Office. These reports are available on the ODCE website at .

The Companies Registration Office maintains a register of persons that have been disqualified and whose disqualification has been notified to the Office. At the end of 2012 there were 3,908 persons registered as disqualified including persons who were automatically disqualified. Disqualification is automatic in circumstances including:

- where a person is convicted on indictment of any indictable offence in relation to a company or involving fraud or dishonesty;

- where a person fails to notify the Registrar of Companies on appointment as a director that they have been disqualified in another State or makes a false or misleading statement in this regard; and

- where a person is convicted of acting as auditor, liquidator or examiner of, or in the formation, promotion or management of, any company while an undischarged bankrupt.

The Court has the discretion to disqualify a person for such period as it deems fit where that person, while acting as director, promoter, auditor, officer, receiver, liquidator, or examiner of a company has been guilty of certain offences including:

- a fraud in relation to the company, its members or creditors;

- a breach of duty in relation to the company; and

- conduct which makes them unfit to be concerned with the management of a company or fraudulent or reckless trading which resulted in a declaration of personal liability for some or all of the debts of the company.

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