1999 Companies Report Published

Mr Noel Treacy, T.D., Minister for Science, Technology and Commerce today (Thursday 8th March, 2001) published the Companies Report for 1999.

In commenting on the Report, Minister Treacy noted the considerable stepping up in enforcement activity during 1999, a trend that has accelerated in 2000. He noted that the Company Law Enforcement Bill "has commenced its Committee Stage progress in the Dáil earlier this year. That Bill will considerably enhance the quality of day to day corporate governance and is a constructive and evenly balanced approach to issues presented in recent company law inquiries, Tribunals and the 1999 Public Accounts Committee examination into the operations of DIRT".

The Companies Report records that 1999 was a very busy year in the company law area. Highlights included:

• Two new investigations, College Trustees Ltd., under Section 19 of the Companies Act, 1990 and Ansbacher (Cayman) Ltd under Section 8 of the Companies Act, 1990, were launched.
• 16 convictions were obtained for Breaches of the Companies Acts, 1963-1999, during 1999, in contrast to 1 in the preceding year.
• The Establishment of a Review Group on Auditing, to examine whether self-regulation in the Auditing profession was working effectively and consistently.
• The Report of the Working Group on Company Law Compliance and Enforcement, proposed extensive changes to existing legislation, including the establishment of the office of Director of Corporate Enforcement;
• New legislation in relation to the statutory audit requirement for small companies, examinership and Irish Registered Non- resident companies.

Statistical highlights identified in the 1999 Report included:

• The number of new companies incorporated was 18,604.
• 36,295 companies were dissolved during 1999, an increase of 260% on 1998.
• The number of companies which went into liquidation, increased by 13% to 930.
• The number of directors restricted by the Courts in 1999, is 128.
• Two complaints of insider dealing were referred by the Irish Stock Exchange to the Director of Public Prosecutions.
• A total of 112 complaints concerning members practising as auditors within the State, were received by accountancy bodies.

Work is already underway to promote legislation arising from the Auditing Review Group. Minister Treacy concluded by saying that "Company law is an area in our Department that is meeting the many challenges presented. In that connection I would hope that we will have a new Consolidated Companies Act, as soon as possible. This measure will enable entrepreneurs and their professional advisers to use the Code to best effect".

Note for Editors

This Report is the 74th in the series. It incorporates, for the second time, the Report of the Registrar of Companies. It also includes detailed information on membership, discipline and similar issues with regard to the auditing bodies, recognised under the Companies Acts.

Copies of the Report will be available for purchase, from the Government Publications Sales Office, Sun Alliance House, Molesworth Street, Dublin 2.