Dáil Éireann debate -
Thursday, 25 Feb 1999

Vol. 501 No. 2

Written Answers. - Companies Registration.

Thomas P. Broughan

Question:

154 Mr. Broughan asked the Tánaiste and Minister for Enterprise, Trade and Employment if her Department gave authorisation to a company (details supplied) to operate in Ireland in view of the fact that the principal of the company has a conviction in the United States for fraud and is an undischarged bankrupt as reported in a newspaper (details supplied) on 19 July 1998. [5749/99]

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

I refer the Deputy to my previous reply of 16 February 1999.

I am conscious of the reports carried in theSunday Business Post on 19 July 1998. The Wise Finance Company Limited was incorporated in the United Kingdom and registered as a branch in this State on 10 November 1995 under the European Communities (Branch Disclosures) Regulations, 1993. Its directors are Ronald Weisz and Fiona Weisz. The Registrar of Companies advises me that The Wise Finance Company Limited is up to date with its filing requirements.

Allegations that Ronald Weisz was declared a bankrupt in New York State in 1994 and has a conviction in the United States for fraud were recently made to our Department. Section 183 of the Companies Act, 1963, as amended, prohibits an undischarged bankrupt from acting as a director of a company. As the bankruptcy was allegedly declared in a foreign state, legal advice was sought on the issue of jurisdiction. I have been advised that a person declared a bankrupt in the US and remaining undischarged would not be in breach of section 183 by acting as a director in this jurisdiction by virtue of the definition of undischarged bankrupt as prescribed by section 2 of the Companies Act, 1963. I am also advised that the Irish courts do not necessarily recognise a foreign bankruptcy with the possible exception of,inter alia, a bankruptcy in Northern Ireland, England, Scotland, Wales, the Isle of Man and the Channel Islands. Such an issue will be considered in the preparation of future companies legislation.

My colleague, the Minister for Labour, Trade and Consumer Affairs, advises me that The Wise Finance Company Limited which is primarily engaged in mortgage lending, does not require a licence/authorisation for its activities. Again, this is a further matter which will be taken into account in the preparation of future legislation.