Approval of the Companies (Corporate Enforcement Authority) Bill 2021. What is expected?

• Ireland

• Corporate secretarial services

02-09-2021

The Government has approved the Companies (Corporate Enforcement Authority) Bill 2021 (the “Bill”) which proposes to put in place new legislation providing for the establishment of the Corporate Enforcement Authority (“CEA”).

The objective in establishing the CEA will be to redesignate the Office of the Director of Corporate Enforcement (“ODCE”) as a stand-alone agency, granting it enhanced powers to enforce company law in Ireland and giving it more independence and control over its resources. The impending establishment of the CEA will certainly come as a welcome development and highlights the Irish Government’s increasing focus on tackling white collar crime.

The approval of the Bill flows from the preceding General Scheme of the Companies (Corporate Enforcement Authority) Bill (the “General Scheme”) which was originally published in late 2018. In addition to the establishment of the CEA, the General Scheme proposed the implementation of a number of recommendations of the Company Law Review Group which are expected to be put in place in the near future.

Function

While the core functions of the CEA will be somewhat similar to that of the ODCE, the Bill proposes to grant additional functions and powers to include investigating instances of suspected company law offences, prosecution of summary offences for non-compliance with the company law, referral of indictable offences to the Director of Public Prosecutions and supervising liquidators and receivers. In that regard, it is anticipated that the additional powers granted will allow for a more forensic and robust approach in tackling serious breaches of company law.

Timing

The Government’s approval of the Bill is timely against the backdrop of the aftermath of the Covid-19 pandemic and the possibility of a significant increase in corporate insolvencies resulting from the difficulties faced by companies during the pandemic.

The Bill is expected to be introduced to the Houses of Oireachtas this September.

Our team

At Eversheds Sutherland, we have a highly skilled company secretarial team who can provide assistance and advice on all aspects of company law and corporate governance.

We will continue to keep you abreast of changes and updates in company law that may affect your company including those expected to arise from the implementation of recommendations contained in the General Scheme as mentioned above.

If your company or its officers require assistance with any of their statutory obligations, our experienced company secretarial team is on hand to assist.

Please contact a member of our team:

Liam Boyle, Head of Company Secretarial - LiamBoyle@eversheds-sutherland.ie

Ciara Wheeler, Trainee in Company Secretary - CiaraWheeler@eversheds-sutherland.ie