Director of Corporate Enforcement secures convictions

Nineteen criminal convictions for breaches of the Companies Act were secured in the District Court last year, following investigations by the Office of the Director of Corporate Enforcement.

In keeping with a “strategic shift” towards indictable cases, a further two prosecutions came before the Circuit Criminal Court; one of those is now under appeal.

Details of its actions have been published in its 2014 annual report.

The director’s role is to improve legal compliance within the corporate world by enforcing the rigours of the Companies Act and “bringing to account those who disregard the law”.

In this regard, the report outlines successes in bringing about 281 cases of nonspecific compliance with legislation through “formal measures”.

A total of 177 company directors faced “restrictions”, and 16 were disqualified from their functions on foot of liquidators’ applications to the High Court.

Six individuals were disqualified following applications made directly by the office.

Noncompliance

The report noted actions taken to address activities in other areas, notably the rectification of various noncompliance, including issues about directors’ loans; individuals acting as statutory auditors while not qualified to do so; and failures in maintaining proper financial records.

A total of 236 complaints were received from members of the public, down from 252 the previous year.

The majority of these (65) related to allegations of “reckless, fraudulent [or] insolvent trading”, with 28 addressing audits or auditors and 27 relating to unpaid debts.

In 2013, the office’s annual report noted shortcomings in relation to resources, notably a lack of necessary inhouse accountancy expertise and forensic IT specialists.