The period in which legal proceedings can be taken against companies breaking company law is likely to be extended under forthcoming legislation. Under the 1990 Companies Act legal action is only possible for the three years after an offence has taken place.
But the Companies (Amendment) Bill currently being formulated by the Department of Enterprise, Trade and Employment will include a proposal to extend this period.
Yesterday the Tanaiste and Minister for Enterprise, Trade and Employment, Ms Harney, said recent experience had shown that the three-year deadline often expired before offences were discovered.
There is no indication yet of how long the period might be extended, but sources say it could be as long as 10 years.
Ms Harney said she had been "disappointed" to learn after her appointment that only proceedings instituted within three years of an offence are valid.
The rest of the bill will concentrate on examinership issues and the removal of the statutory audit requirement for small companies.
The decision to include the extension proposal in the bill was announced yesterday Ms Harney, at an Institute of Directors lunch in Dublin.
She added that she intends to examine in the near future what extra resources might be allocated within her department to initiate prosecutions for offences committed under the companies acts.
She said it was the duty of the Government to ensure company legislation remained relevant and effective "for the times we live in".
She said there was still "quite a large number of companies failing to provide basic information on their membership and financial standing".
She reminded directors of companies that the law does not differentiate between executive and non-executive directors.
Meanwhile, the Registrar of Companies, Mr Paul Farrell, has said he expects to take "significantly" more legal proceedings next year against companies for failing to file up-to-date accounts.
Mr Farrell said the recent 50 per cent increase in staff and the installation of a new IT system at the companies office would enable it to "be tougher" with offending companies.
He said next year was also likely to see a noticeable increase in the number of companies struck of the companies register.
He said defaulting companies were currently enjoying a "period of grace" to bring their affairs up-to-date. If companies do not react to the "new mood", certain directors may be disqualified from holding any directorships, said Mr Farrell.
Iris Offiguil yesterday printed the names of approximately 4,890 companies who will be struck off the companies register, unless a "cause is shown to the contrary".
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