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Company Closures.

Dáil Éireann Debate, Tuesday - 10 May 2005

Tuesday, 10 May 2005

Ceisteanna (199, 200)

Joe Higgins

Ceist:

250 Mr. J. Higgins asked the Minister for Enterprise, Trade and Employment the action he will take to recoup the €300,000 given by the Enterprise Ireland to Swords-based telesales company (details supplied) in view of the fact that this company shut down its operations in March 2005 owing its employees, among many other creditors, on average six weeks unpaid wages before setting up business again under the name (details supplied). [15172/05]

Amharc ar fhreagra

Freagraí scríofa

When Enterprise Ireland-funded companies close or liquidate and contingent liabilities remain outstanding on grants paid to the companies, the liabilities fall due. I understand that Enterprise Ireland has informed the company in question that it is Enterprise Ireland's policy to seek revocation of grant moneys paid as the company is in breach of its legal agreement with Enterprise Ireland. In this case, following the appointment of a liquidator, Enterprise Ireland will follow its usual legal procedures in these matters. I have been informed that European ICT Resource Facilities Limited is still registered with the Companies Registration Office, CRO, and has not filed any documents indicating that it has ceased to trade. The CRO register of companies has no mention of the second company in question. I am informed by Enterprise Ireland that it is not aware of any new operation being opened by the company in Ireland.

Joe Higgins

Ceist:

251 Mr. J. Higgins asked the Minister for Enterprise, Trade and Employment the sanctions his Department will take against companies grant-aided by State bodies that shut down owning money to creditors and employees before setting up business again under a different name. [15173/05]

Amharc ar fhreagra

The Director of Corporate Enforcement, ODCE, has a range of investigative and enforcement powers, which permit the imposition of criminal and civil sanctions by the Courts for breaches of the Companies Acts and abuse of the privilege of limited liability. The director's responsibilities include the supervision of unliquidated insolvent companies, UICs. The Office of the Director of Corporate Enforcement has published a booklet on UICs, which indicates the director's approach to addressing this phenomenon. The director has undertaken to forward a copy of this publication to the Deputy for his information.

When companies grant-aided by the industrial development State bodies under the aegis of my Department close or liquidate and contingent liabilities remain outstanding on grants paid to the companies, the liabilities crystallise and the relevant agency seeks to have any moneys repaid to it. When these agencies consider providing funding assistance to any company, either new or expanding and which has had a prior corporate existence, I understand that they will take account of all aspects of the track record of the promoters of the company.

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