What is the purpose of Section 176 ?
SECTION 176.
Question proposed : " That Section 176 stand part of the Bill ".
The main point is the requirements of the law for identifying and giving information concerning directors of a company and making them answerable for their misconduct. Right through this Bill there are penalties provided for directors failing to comply with the obligations of the Bill. If bodies corporate are appointed as directors, then the means of effecting penalties would be defeated. The main purpose is to ensure that you have physical people, living people, who can be answerable to the law for the performance of their obligations. The desirability of doing this is referred to also in the Jenkins Report.
Surely the Minister knows that in the case of a small private company a member of the firm or company who acts as auditor to the company usually acts as secretary on the basis that it is the same firm which looks after the secretarial work as does the auditing ? I rather think that this harks back to the audit provision and the disqualification of auditors' partners. I wonder if we could prevail on the Minister to have second thoughts in regard to this question of permitting a partner of the auditor's firm to act as secretary to the company in the case of a small private company ?
We dealt with that point when we were considering sub-section (3) of Section 162. Deputy Byrne may remember that I promised to reconsider the points in paragraph (b) of that subsection.
I think the Chairman brought this up at an earlier stage.
It was discussed before but I do not think the passing of this subsection at this stage will nullify the Minister's undertaking to have another look at it.
Notice of opposition to this section was given by Deputy D. Costello.
Yes, but there is no notice of any amendment.
This point can be considered on Report. Once it is adverted to at this stage I think it can be raised by way of amendment on the Report Stage.
Question put and agreed to.
Section 177 agreed to.