asked the Minister for Industry and Commerce the broad provisions and the implications for Ireland of the EEC Commission proposal C. 7, 28. 1. 1972 in regard to guarantees to protect the interests of shareholders and outsiders relative to companies; and the present status of the proposal; and the action taken by the Government in relation to it.
Ceisteanna—Questions Oral Answers. - Company Law Proposals.
104.
The Deputy is referring to the proposals for fourth directive on the annual accounts of limited liability companies. In general, the proposed draft directive deals with the format and content of annual accounts for companies. If adopted in its present form, it would permit member states to authorise certain classes of companies below a specified size to publish their accounts in an abridged form only. It would also permit member states to exempt certain classes of companies below a specified size from the obligation to have their accounts audited by qualified auditors.
I must emphasise that these proposals are in the form of a draft directive. Pending discussions between the EEC Commission and the countries concerned and the emergence of a more final form of the directive, it is not possible to make a definitive statement about the implications for this country.
Some amendment of the provisions in the Companies Act, 1963, regarding the contents and form of annual accounts can be entailed and, it seems at this stage that some, if not all, private limited companies will be required to publish their annual accounts, in full or in an abridged form.
The provision regarding exemption of certain companies from the requirement of having their accounts audited by qualified auditors is optional, and I do not envisage any relaxation of the provisions of the Companies Act, 1963, which require the audit of company accounts by qualified auditors.
I should add that, in dealing with these and similar proposals, my Department has the benefit of regular consultation with a number of organisations with special competence or experience in the field of company law.
Will the Minister circulate to Deputies information as to the extent to which the Companies Act, as legislated by this House, will be altered by this directive, prior to a decision being taken on the directives, so that Deputies who participated in a big way in the formulation of the Companies Act, 1963, will be able to see what is being done to their work by the Council of Ministers of the EEC.
We are talking about draft directives as present.
It will be too late to consult them when the directive has already been agreed.
Agreed. I have an informal working party exchanging views on the various EEC proposals on company law. It is intended to be all-embracing. In addition to officers of my Department and representatives from the Revenue Commissioners, the group is composed of representatives of the accountancy bodies, the Incorporated Law Society, the Confederation of Irish Industries and the Federation of Trade Associations. As I see it, all other interested parties will be consulted as the need arises.
Will the Minister communicate to this House, which put so much work into the Companies Act, how it will be amended by the EEC.
There is no reason why I should not.
Will the Minister?
The Minister said some companies might be exempted from the requirement of this proposed directive to publish their accounts. Could the Minister give any indication of what class of companies might be exempted?
I said it would also permit member states to exempt certain classes of companies below a specified size. It is a question of fixing the specified size.