300 company directors face High Court action for breaches of company law, according to the annual report of the Office of the Director of Corporate Enforcement.
The directors of approximately 140 insolvent companies will be referred to the High Court by liquidators acting on the instructions of the ODCE. The court will ultimately determine if the insolvencies involved dishonest or irresponsible conduct on behalf of the directors.
Under new rules, both auditors and liquidators must report any suspected breaches of company law to the ODCE. 540 cases were dealt with in 2002 with 20 convictions under the Companies Act secured. So far this year, there have been 15 convictions. 70% of cases involved the failure to keep proper books of account, produce company registers or hold annual general meetings.
Legal action surrounding an inquiry into Dunnes Stores Ireland and further action relating to the Ansbacher Report continues while an interim report into National Irish Bank has been forwarded to the Director.
