Emmet Stagg
Question:13 Mr. Stagg asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will make a statement on the 2001 Companies Report and her proposals for the simplification of the company law code. [24886/02]
Written Answers. - Companies Report.
The Companies Report is an annual report on matters relating to the Companies Acts presented to the Oireachtas under section 392 of the Companies Act 1963. As the report covers a wide range of matters and includes a very substantial amount of information, it is difficult to make anything other than a very general statement. If the Deputy has a particular concern, I would be glad to answer a more specific question at a future date.
The Companies Report 2001 highlighted a number of significant developments in the company law area during the year.
The Company Law Enforcement Act 2001 was enacted. This was a landmark development in the Government's efforts to combat corporate crime and malpractice. One of the main initiatives covered in the Act was the establishment of the Office of the Director of Corporate Enforcement.
The effectiveness of the Government's recent efforts to improve compliance with company law was reflected in the fact that 85% of companies filed their annual return in the CRO compared to only 36% in 1997.
In December, 2001, the Government approved the draft scheme of the Company Law (Audit and Accountancy) (Amendment) Bill, the main purpose of which is to establish the Irish Auditing and Accounting Supervisory Authority (IASSA) and the transfer to IASSA of the Minister's current role in the regulation of auditors under the Companies Acts.
In October, 2001, the regulation to establish a European Company Statute was finally adopted by the EU Council of Ministers. In the same month, the Company Law Review Group was established on a statutory basis.
On 26 July 2002, the Government approved the drafting of the general scheme of a Companies Bill to replace the existing companies code. The new Bill will replace 40 years of companies' legislation. The objective is to bring the general scheme of the Bill to Government for approval early in 2003.
The guiding principles behind the reform are that company law should be effective, intelligible to directors and shareholders, and that the law should reflect how business is transacted. Flowing from this, the principle innovation at the heart of the reform is to replace the public company or plc by the most common type of company, the private company limited by shares, as the standard type of company upon which company law is based.