asked the Minister for Industry and Commerce if the eighth EC Directive on Company Law will allow auditors to form limited companies; if it will require official licensing of creditors; and his views on the provisions of the EC eighth directive.
Written Answers. - EC Company Law Directive.
138.
The Eighth Council Directive requires member states to regulate the educational standards and independence of those carrying out statutory audits.
In relation to the first part of the Deputy's question, Article 2.1 of the Directive gives member states the discretion to approve natural or legal persons or other types of company, firm or partnership as auditors. Under existing Irish legislation, section 162 (5) (e) of the Companies Act, 1963, prohibits companies from carrying out audits.
The licensing of creditors referred to in the second part of the Deputy's question, does not arise in the directive; it is assumed, therefore, that the query refers to the licensing of auditors. In this regard, Article 28 of the Directive requires member states to ensure that the names and addresses of approved auditors and firms of auditors are made available to the public. This in turn raises the question of introducing some sort of registration/licensing system for auditors.
In general, Ireland supported the adoption of this directive. Member states are requirted to bring its provisions into force not later than 1 January 1990. In a number of areas, discretion is given to member states as to the manner in which the provisions will be implemented. My Department are currently examining these options as well as considering the legislative steps necessary to implement the Directive in this country. In the circumstances, it would be premature for me to comment in more details on the Directive.