I have recently received correspondence from the Irish Institute of Credit Management outlining its views on alleged difficulties associated with the present strike-off regime. I will be issuing a full reply to the institute's concerns shortly.
The Companies Acts, 1963-1999 permit the strike-off of companies from the Register of Companies in circumstances where a company fails to file returns or where the registrar has reasonable cause to believe that a company is not carrying on business. The Companies (Amendment) (No. 2) Act, 1999 has recently provided that a company is eligible for strike-off after failing to file an annual return for one year. Previously, the period of eligibility was two years.
The Act has also made it easier for a creditor to restore a company to the register after strike-off by providing that such an application may be made to the Circuit Court rather than the High Court. It also now provides that the Circuit Court may appoint a liquidator to a company after it is struck off. Rather than denying creditors their entitlement, I would suggest that the recent legislative changes have in fact facilitated applications by creditors for the re-instatement or liquidation of a company.
In its representations to me, the Irish Institute of Credit Management has suggested that the strike-off process is being used as a vehicle for tax evasion. I understand that the registrar of companies has had a series of meetings with the Revenue Commissioners in relation to the new Act, and I am assured that Revenue plans to make full use of the powers available to it to counter any threat of tax evasion.