Written answers

Tuesday, 23 September 2014

Department of Jobs, Enterprise and Innovation

Company Law

Photo of Terence FlanaganTerence Flanagan (Dublin North East, Independent)
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211. To ask the Minister for Jobs, Enterprise and Innovation his views on correspondence (details supplied) regarding non-compliant companies; and if he will make a statement on the matter. [35308/14]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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The Company Law Enforcement Act 2001 provides that the functions of the Director of Corporate Enforcement include enforcing and encouraging compliance with the Companies Acts and exercising a supervisory role over the activities of liquidators.

In the case of an insolvent liquidation, the liquidator of the company has a duty to investigate the company’s affairs and, under section 56 of the Company Law Enforcement Act 2001, a duty to submit a report to the Director of Corporate Enforcement. This report must include information on the conduct of any person who was a director of the company during the 12 months preceding its liquidation. Additionally the liquidator must proceed to apply to the High Court for the restriction of each of the directors of the insolvent company, unless relieved of that obligation by the Director of Corporate Enforcement.

A restriction declaration, if made, prohibits an individual from acting, either directly or indirectly, as an officer of a company or from being involved in its formation or promotion for five years, unless the company is adequately capitalised. In the case of a private company, the capital requirement is €63,487 in allotted paid-up share capital. The equivalent figure for public companies is €317,435.

In general, a company is considered to be a separate legal entity from its owners and managers under company law. Therefore, unless a person has been disqualified, pursuant to section 160 of the Companies Act 1990, or restricted, pursuant to section 150 of the Companies Act 1990, that person may become a director of a company, irrespective of whether another company of which he or she is a director is in liquidation.

If the Deputy wishes to make available information that suggests circumstances of possible wrongful behaviour relating to companies or company directors he should contact the ODCE at 16 Parnell Square, Dublin 1 or alternatively at .As the Director of Corporate Enforcement is a statutory independent officer it is not possible for me to intervene in any action or decision taken by the Director in relation to his statutory functions.

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