The ODCE published its last annual report for the period up to 6th July 2022. The ODCE was replaced by the Corporate Enforcement Authority (“CEA”) in July 2022. The following are the main points from the report. Click here to read the full report https://enterprise.gov.ie/en/publications/publication-files/final-report-of-the-director-of-corporate-enforcement.pdf
- 323 liquidator reports
- 43 Auditors indictable offence reports
- 8 Examiners reports
- 12 referrals from external parties
- 77 complaints from the public (main complaints)
- Reckless/fraudulent/insolvent trading
- Relating to unpaid debts
- Allegations of forgery/furnishing of false information/falsified documents
- AGM/EGM
- 7 Disclosures under the Protected Disclosures Act
- 662 restriction and disqualification undertakings
- the office identified and examined 11 companies involving directors of companies which were struck off the Register while having significant outstanding liabilities. As a result of the examination of these companies, together with the examination of a further 39 related companies, 5 directors were disqualified on foot of disqualification Undertakings given pursuant to section 851 of the Act. Additionally, one company was restored to the Register with a view to discharging any relevant outstanding debts
- Arising from liquidators’ section 682 reports and the Office’s decisions not to grant relief to the liquidator, a total of 59 directors were restricted or disqualified during the period.
- Of this number, 17 directors were restricted by way of voluntary Undertakings and a further 29 directors were restricted by order of the High Court; 4 directors were disqualified by way of voluntary Undertakings with a further 9 directors disqualified by order of the High Court.
- An additional 5 directors of Dissolved Insolvent Companies consented to disqualification by way of voluntary Undertakings. One company was restored to the register in March 2022 as a result of engagement with this Office.
- Directors’ loans infringements – In 8 cases in the period under review where suspected directors’ loan infringements had been reported by auditors, or had otherwise come to attention, the Office’s actions resulted in rectifications (including the repayment/reduction of loans) totalling €1.9m. Such rectifications are in the interests of affected companies’ members and creditors.
- 43 instances of companies’ failure to comply with accounting standards were reported to the Office by way of auditors’ indictable offence reports. The underlying nature of the issues involved (for example, differing interpretations of an accounting standard) are such that most of such matters are capable of being resolved to the ODCE’s satisfaction by way of voluntary rectification.
- the Office undertook a review of the register of disqualified and restricted persons as maintained by the Registrar of Companies and Iris Oifgiul to identify undischarged bankrupts. Arising from the review, 10 persons appeared to be in contravention of such orders and undertakings. Following ODCE intervention, the individuals’ positions were regularized
- Exercise of the Director’s statutory powers –
- the serving of 3 statutory requirements to produce minutes of general meetings under section 199 of the Act;
- 29 court orders or requirements were obtained (pursuant to both s. 52 Criminal Justice (Theft & Fraud Offences) Act 2001 and s. 63 Criminal Justice (Money Laundering and Terrorist Financing) Act 2010;
- the execution of 10 search warrants;
- the arrest of 3 persons;
- meeting 5 persons by arrangement having volunteered to provide statements under caution;
- the issuance of 5 applications for Mutual Legal Assistance;
- the making of 40 data protection requests pursuant to s. 41(b) of the Data Protection Act 2018; and
- the serving of 3 statutory requests on auditors for information under section 393 of the Act.
NB. The content of this article is provided for information purposes only and does not constitute legal or other advice.
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