Skip to main content
Normal View

Office of the Director of Corporate Enforcement

Dáil Éireann Debate, Tuesday - 27 November 2018

Tuesday, 27 November 2018

Questions (332, 333)

Maurice Quinlivan

Question:

332. Deputy Maurice Quinlivan asked the Minister for Business, Enterprise and Innovation the number of company director restrictions imposed by the Office of the Director of Corporate Enforcement in 2017 and to date in 2018, in tabular form. [49280/18]

View answer

Maurice Quinlivan

Question:

333. Deputy Maurice Quinlivan asked the Minister for Business, Enterprise and Innovation the number of company director disqualifications imposed by the Office of the Director of Corporate Enforcement in 2017 and to date in 2018, in tabular form. [49281/18]

View answer

Written answers

I propose to take Questions Nos. 332 and 333 together.

The ODCE does not have the power to impose company director restrictions or disqualifications.  Only the High Court can impose such sanctions.  However, following the commencement of the Companies Act, 2014, in June, 2015, the ODCE may, in specified circumstances, invite an individual, who would otherwise face High Court proceedings seeking their disqualification or restriction, to submit to a voluntary undertaking.  Where such undertakings are given they have the same legal effect as Court imposed disqualifications or restrictions. 

In order to determine whether, or not, to offer an undertaking, the ODCE examines the circumstances of each case and determines whether it has reasonable grounds for believing that the individual concerned should be subject to a disqualification or restriction. 

Disqualifications

In 2017, the ODCE recommenced a programme of investigation of companies that were struck off the companies register while still having debts.  The directors of such companies are liable to be disqualified by virtue of section 842(h).  This area of investigation had previously to be suspended in the light of concerns arising from a judgement handed down by the High Court.  Having regard to their concerns about the judgment, the ODCE successfully appealed the decision to the Court of Appeal.

Further disqualifications arise in connection with insolvent companies in liquidation.  The decisions will usually be based primarily on a detailed review of the statutory reports that liquidators are required to make to the ODCE in respect of insolvent liquidations.  In a small number of such cases, an offer of a disqualification undertaking may be made.

However, in other cases, such as where a director decides not to give an Undertaking, the liquidator involved will be required to proceed with an application to the High Court for the restriction of the directors of the company but, in appropriate cases, may also apply to have the directors concerned disqualified. 

Details of all disqualifications arising on foot of either Undertakings given to the ODCE or Court orders are set out in the table attached:

Restrictions

In order to determine whether, or not, to offer an Undertaking, the ODCE examines the circumstances of each case and determines whether it has reasonable grounds for believing that the individual concerned should be subject to a restriction.  This primarily arises in connection with insolvent companies in liquidation.  The decisions will usually be based primarily on a detailed review of the statutory reports that liquidators are required to make to the ODCE in respect of insolvent liquidations.

In certain circumstances, such as a case where a director decides not to give an Undertaking, the liquidator involved will be required to proceed with an application to the High Court for the restriction of the directors of the company. In certain circumstances, liquidators may also form the view that a disqualification application is appropriate.  Details of all restrictions arising on foot of either Undertakings given to the ODCE or Court orders are set out in the following tables:

Directors Restricted

2017

2018 (to date)

Undertakings

86

78

Court   Order

31

17*

Total

117

95

*This is the number of Court Orders that have been notified to the ODCE.

PQ 49281 Table

Directors disqualified

2017

2018 to date.

Struck-off companies (all by undertakings)

4

19

Disqualifications in connection with insolvent liquidations:

- Undertakings

1

1

- Court Order

9

8*

Total

14

28

* This is the number of Court Orders that have been notified to the ODCE to date.

Top
Share