Dáil Éireann debate -
Wednesday, 13 May 1998

Vol. 491 No. 1

Written Answers. - Company Law Review Group.

John Perry

Question:

55 Mr. Perry asked the Tánaiste and Minister for Enterprise, Trade and Employment when the company review group recommendations, with particular regard to private limited companies, will be implemented; and the main benefit of the proposed changes. [11486/98]

Minister of State at the Department of Enterprise, Trade and Employment (Mr. Treacy)

The Company Law Review Group recommended changes in company law in respect of six of the areas that were examined by the group.

I propose to implement those recommendations of the group considered appropriate on a phased basis, starting with a Bill which I plan to introduce later this year to amend the Companies (Amendment) Act, 1990, the "examinership" Act, and to remove the statutory audit requirement for certain small companies. The remaining areas on which the group made recommendations relate to investigations, insider dealing, corporate governance issues relating to the preparation, content and regulation of financial statements and related matters, and the restriction and-or disqualification of directors of insolvent companies. I will bring forward proposals in these areas when they have been evaluated.

The proposals in respect of examinership will apply to all companies, while those relating to removal of the statutory audit requirement will relate specifically to private limited companies that meet specific criteria. The proposals in relation to examinership will effectively streamline the examinership process which is designed to assist companies in financial difficulties. The removal of the statutory audit requirement for certain private limited companies will effectively reduce burdens on such companies by removing the necessity for them to have their annual accounts audited.

In general, the recommendations in the other areas are designed to make the existing statutory provisions more effective or to introduce new requirements.