Company Law

The low-key launch of the Office of the Director of Corporate Enforcement (ODCE) this week, offers the interesting prospect of…

The low-key launch of the Office of the Director of Corporate Enforcement (ODCE) this week, offers the interesting prospect of Ansbacher account holders being pursued on another front. The new body will take over responsibility for policing company law from the Department of Enterprise and Employment and has significant new powers. Once the High Court investigation into Ansbacher is completed, the so-called Ansbacher Names can now expect to receive the attentions of the ODCE in tandem with a visit from the Revenue Commissioners. Such co-opertion between two arms of the State will go some way to ensuring that every effort is made, in the months and years ahead, to bring to justice the tax cheats and criminals amongst us.

Unfortunately, much of this work will take place in secret. The ODCE has indicated it will wear an all-too-familiar cloak of confidentiality. Mr Paul Appleby, the new director, was at pains to point out that the legislation establishing his office only allows him to pass confidential information to other authorities such as the DPP. We will only know that the ODCE has conducted an investigation at all, when it brings a case to court.

This information blackout extends to the Minister for Enterprise and Employment and Oireachtas committees, if deemed necessary by the director to ensure his work is not compromised. This, in effect, means we will know less than before about the State's efforts to uphold company law. Any inspection ordered by the Minister for Enterprise and Employment, under the previous system, was a matter of public record.

The ODCE would argue that it must be mindful of the damage that can be done to a company if it becomes known that it is the subject of an investigation - regardless of the outcome. But while the right of individuals and companies to their reputations is important, this has to be balanced against the need for the regulatory system to be seen to be working. The lack of public confidence in this aspect of government, following the Ansbacher and related scandals, should sway the argument in favour of fuller disclosure of the ODCE's activities.