Dáil Éireann debate -
Thursday, 8 May 2003

Vol. 566 No. 2

Written Answers. - Proposed Legislation.

Eamon Gilmore

Question:

36 Mr. Gilmore asked the Tánaiste and Minister for Enterprise, Trade and Employment when the promised legislation will be introduced to restrict the appointment of children as company directors; and if she will make a statement on the matter. [12271/03]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney):

This reform is being introduced on foot of identification by the Companies Registration Office of a small number of companies with minors as directors. I chair the review group and I share its view that the limited liability, which attaches to being a company director, is a legal privilege that the law ought not make available to minors. Being a director carries responsibilities and duties and it is necessary that those who are accountable and answerable should be of an age to understand these duties.

In its first report in February 2002 the company law review group recommended that it should not be possible to appoint anyone a director of a company until he or she had reached the age of majority, 18 years. This recommendation is one of many recommendations for reform and consolidation which will see the modernisation of the companies code and its consolidation into a single Act.

The Government has approved these reforms in principle and drafting is well in hand to give effect. The Bill will consist of more than 1,000 sections. The Heads of the Bill are likely to come to Government for approval at the end of this year. Subsequent to that they will go to the Office of the Parliamentary Counsel for drafting of the Bill. It will be brought before the Oireachtas as soon as possible thereafter.