Vol. 520 No. 4
42 Mrs. Owen asked the Tánaiste and Minister for Enterprise, Trade and Employment the situation concerning charitable companies or very small companies requiring audited accounts; if she will indicate whether the Companies (Amendment) (No. 2) Act, 1999, is now in force; the companies exempted from having to require audited accounts; and if she will make a statement on the matter. [15766/00]
The regulation of charities is a matter that falls within the remit of the Minister for Justice, Equality and Law Reform. Pending the finalisation of planned legislation in the area, the Minister took the view that the current audit obligations of guarantee companies, many of which operate as charities, should remain. Accordingly, the audit exemption provisions in the Companies (Amendment) (No. 2) Act, 1999, do not apply to guarantee companies by virtue of section 32(3)(a)(i) of the Act. Banks and certain other entities in the financial sector are also precluded from availing of the audit exemption under section 32(3)(a)(v) of the Act.
Under subparagraphs (ii), (iii) and (iv) of section 32(3)(a) of the Act, the companies which qualify for exemption are those which do not have an annual turnover of £250,000; whose balance sheet total for the year does not exceed £1.5 million; and, where the average number of employees does not exceed 50 in that year.
A decision by the directors of a qualifying company to avail of the audit exemption is subject to the various conditions and limitations set out in Part III of the Act.
The Companies (Amendment) (No. 2) Act, 1999 (Commencement) Order, 1999 (S.I. No. 406 of 1999) and the Companies (Amendment) (No. 2) Act, 1999 (Commencement) Order, 2000 (S.I. No. 61 of 2000) set out the dates on which specified sections of the Companies (Amendment) (No. 2) Act, 1999 came into force. The provisions relating to the audit exemption were brought into force on 21 February, 2000.
