Appleby warning on seed capital schemes

THE OFFICE of the Director of Corporate Affairs, Paul Appleby, has issued a draft guidance document for directors and investors availing of the business expansion and seed capital schemes.

The document states that although the schemes have been of benefit to all parties, the office has occasionally had difficulties linked to the schemes brought to its attention.

“The ODCE has received occasional complaints from investors who availed of tax relief applying investments in companies under these schemes. These complaints have often concerned a failure by the companies and their directors to account to their shareholders on the company’s performance and on the progress of their investment. We have also reviewed from time to time the circumstances surrounding the insolvency of a small number of companies which have received funding.”

The director is inviting public comment by October 31st next. The draft paper can be read at www.odce.ie.