Minister Martin Publishes 2006 Companies Report

‘Streamlining of Company Law to relieve regulatory impact and promote an economic environment which is strong, successful and competitive’ - Martin

Minister for Enterprise, Trade and Employment, Mr. Micheál Martin today (Thursday 2^nd August 2007) announced the publication of The Companies Report 2006.

The 2006 Companies Report describes in summary form the main legislative changes made in relation to companies since 1 January 2006 and also reports on the implementation and enforcement of the Companies Acts by relevant public agencies and bodies during 2006.

The following are some of the highlights of the report.

• Significant changes were introduced by the Investment Funds, Companies and Miscellaneous Provisions Act 2006. Perhaps the most significant of these was the increase in audit exemption thresholds to the maximum permitted under EU law (i.e. €7.3 million for turnover and €3.65 million for balance sheet). This is in line with a recommendation of the Small Business Forum (April 2006). This change will have a significant impact in terms of lessening the regulatory burden on small business. It is therefore seen as a significant measure in terms of maintaining Ireland’s competitiveness generally.
• The Irish Auditing and Accounting Supervisory Authority (IAASA) had its first year of operation promoting high professional standards in the accountancy and auditing professions.
• The Company Law Review Group (CLRG) produced a report containing its proposal for a General Scheme of the Companies Consolidation and Reform Bill. The proposed scheme envisages the consolidation of 13 Companies Acts and numerous statutory instruments that span a 43-year period, into a single piece of legislation and when implemented, will be the most dramatic modernisation and simplification of company law in the history of the State.

In reference to this development the Minister said “The enormous effort which has gone into this modernisation and streamlining of the legal framework for companies is representative of our ongoing efforts to relieve the regulatory impact on those doing businesses in the State and promote an economic environment which is strong, successful and competitive.” The Minister indicated that he hoped to be in a position to publish a Bill, based on the proposed scheme, by end 2008.

The Report will be published on the Department’s website, www.djei.ie and will be available in Irish.

ENDS/ETE 1771