Select Committee on Enterprise and Economic Strategy debate -
Wednesday, 19 Jun 1996

SECTION 22.

Mr. E. O'Keeffe

I move amendment No. 6:

In page 12, between lines 25 and 26, to insert the following subsection:

"(2) A 'person' in subsection (1) shall include a Director or former Director of a body corporate.".

The intention is to stop people hiding behind companies in order to avoid prosecution when their companies are in breach of the legislation. As I read it, the company would be responsible rather than the person. That is why I want to provide that "person" shall include a director or a former director of the body corporate. In other words, the company would be responsible rather than the person.

Mr. Rabbitte

I understand Deputy O'Keeffe's point but the companies Acts apply and the safeguard he is looking for already exists. Deputy O'Keeffe proposes to include a new subsection in section 22 to include directors and former directors of the body corporate. That is not necessary because the companies Acts are very clear as to when the veil of incorporation can be lifted in the case of offences by directors.

I direct the Deputy's attention to section 30(2) which states:

Where an offence under this Act is committed by a body corporate or by a person acting on behalf of a body corporate and is proved to have been so committed with the consent, connivance or approval of, or to have been facilitated by any neglect on the part of any director, manager, secretary or any other officer of such body, such person shall also be guilty of an offence.

Mrs. O'Rourke

The word "connivance" was used in the Competition Bill two weeks ago. It must be the new buzz word in the Department of Enterprise and Employment.

Mr. Rabbitte

I will try to get the package on the word processor changed to facilitate the Deputy. There must be a synonym.

Mrs. O'Rourke

A nicer word than connivance.

Amendment, by leave, withdrawn.

Section 22 agreed to.