We will deal with the Companies Act 2014 (Section 1313) Regulations 2015. In accordance with Dáil Standing Order 82A(4)(j) and Seanad Standing Order 70A(3)(j), the Companies Act 2014 (Section 1313) Regulations 2015 in draft form were referred to this committee by order of the Dáil of 14 May 2015 and by order of the Seanad of 26 May 2015. The committee has been asked to send a message to both Houses by 28 May 2015 stating that it has completed its consideration of the regulations. I invite the Minister for Jobs, Enterprise and Innovation, Deputy Richard Bruton, to make a brief opening statement.
Companies Act 2014 (Section 1313) Regulations 2015: Motion
I thank the committee for facilitating the passage of this statutory instrument. In preparation for the commencement on 1 June 2015 of the Companies Act 2014, a number of statutory instruments are to be issued to deal with functional issues related to the operation of the Act. The statutory instrument before us is one which requires positive approval by the Oireachtas. It concerns the application of certain aspects of company law to unregistered companies, specifically the Bank of Ireland. None of these provisions is new and the purpose of the statutory instrument is to maintain the status quo.
Company law applies to companies which are formed and registered under the Companies Act. However, unregistered companies still exist and the Bank of Ireland is the main unregistered company in Ireland, having been formed under a royal charter in 1783. Notwithstanding its unregistered status, the Bank of Ireland must still comply with company law. As a result, there has always been a provision in company law to allow specific provisions to be applied to the bank. In the Companies Act 2014, this is achieved by way of maintaining all law relating to unregistered companies in a single Part, which is supplemented by a table contained in the Schedules. Section 1313 of the Act is the relevant provision. It provides that the table in Schedule 14 may be extended to include any relevant provision in the rest of the Act. The statutory instrument before us applies the provisions listed in Article 4 to the Bank of Ireland.
If Members wish, I will go through each article and the various provisions being applied line by line. It is important to note, however, that the provisions before us do not do anything new. They are standard provisions related to accounting, the treatment of securities and so forth.
How do members wish to proceed?
As a matter of interest as opposed to a critique, would it have been possible to apply this provision to unregistered companies in the Companies Act rather than by means of a statutory instrument? The Minister referred to the Bank of Ireland. What other unregistered companies operate here?
I understand there are no other unregistered companies in this category. While the matter is probably covered in existing statutory instruments, this regulation is to make assurance doubly certain. All of these provisions will apply.
Will this be conditional or subject to a time limit provided there are no changes in future?
The provisions will be applied by this statutory instrument. Bank of Ireland requested that section 1114 be applied to the bank on the basis that the generic company law accounting framework is not sufficient and it should be made clearer that the specific accounting framework for a bank or credit institution, which is covered by a Department of Finance statutory instrument, should apply to the Bank of Ireland. The statutory instrument to be issued by the Department of Finance is to be construed with the Companies Acts but applies additional and more stringent standards in certain respects, for example, regarding publication requirements. This regulation stitches in existing practice in a clear and statutory fashion.
I note the Minister stated that Bank of Ireland requested that a certain section be applied to the bank. Was the issue not picked up before Bank of Ireland noticed it? Did Bank of Ireland bring it to the Department's attention?
This issue is, arguably, already covered and the regulation is being introduced to ensure there is no doubt in that regard.
That concludes the joint committee's consideration of the regulations in draft.