The Corporate Enforcement Authority (the “CEA”) was established in July 2022 under the provisions of the Companies (Corporate Enforcement Authority) Act 2021.
The CEA’s mandate flows from the Companies Act 2014 and its primary functions arising therefrom include the following:
- Encouraging adherence to company law regulations;
- Investigating suspected violations of company law;
- Taking necessary enforcement measures for identified breaches of company law;
- Overseeing the actions of liquidators managing insolvent companies; and
- Implementing a system of restrictions and disqualifications for directors of insolvent companies.
The CEA published its first report on 19 June 2024. The report highlights some 470 complaints received from the public in respect of the conduct of Company Directors, along with an additional 300 statutory reports from auditors, examiners, and process advisors. It also details the enforcement powers exercised by the CEA. During the first 18 months of the CEA’s operations, 80 directors were restricted, and 17 directors were disqualified following reports submitted by liquidators under Section 682 of the Companies Act 2014. Moreover, 10 directors were removed from insolvent companies, and 12 cases were referred to the Director of Public Prosecutions, resulting in criminal convictions in some cases.
The Government has recently sought to enhance the powers of the CEA through the enactment of the Companies (Corporate Governance, Enforcement and Regulatory Provisions) Act 2024 (the “2024 Act”) on 12 November 2024. This Act provides a more thorough legislative framework to investigate breaches of company law and to efficiently prosecute such breaches by streamlining processes where possible and creating new offences.
The Act will also have practical effects for the operation of companies, with hybrid and virtual convening of AGMs now permitted.
For more information on the company law, corporate governance, the CEA or advice for directors, secretaries or shareholders, please contact Niamh Gibney or Bernard King.
The content of this article is provided for information purposes only and does not constitute legal or other advice.
