The Consultative Committee of Accountancy Bodies in Ireland (CCAB-I) today commented to the Department of Enterprise, Trade and Employment on a number of aspects of the Companies (Amendment) Bill 2009, in particular:
- Section 5 of the Bill, which proposes to extend the powers of seizure of the ODCE;
- Section 7 of the Bill, which proposes a re-wording of section 40 of the Companies Act 1990 on criminal penalties for breach of Section 31 of the Act on directors' transactions; and
- Section 8 of the Bill, which proposes changes to the financial statements disclosure requirements, included in the 1990 Act, pertaining to directors and connected persons of banking companies.
Particular concerns noted in the letter include:
- The potential that the ODCE's extended powers to seize and retain computers, documents and other information and materials could, in certain circumstances, threaten the ability of a company or a person to continue in business;
- That the proposed amendments to Section 40 of the 1990 do not contain any protection for directors who have taken all reasonable steps to prevent a default by the company of the provision of Section 31 of the Act regarding transactions with directors; and
- That the provisions of the Bill, as currently drafted, may not achieve the objectives of the legislation with regard to improving the disclosure in the annual financial statements of banks of transactions with directors of the bank, and connected persons of such directors.