Attorney General Michael McDowell made it clear this week he would be taking no nonsense from companies which fail to fulfill their legal obligations. Quite what his audience at an Institute of Directors' lunch this week made of his proposals for on-the-spot fines for failure to file adequate annual returns in time is unclear.

However, they can have little complaint. As Mr McDowell pointed out, between 1994 and 19967, the level of compliance with Companies Office filing rules on annual returns fell from a discreditable 16 per cent to a downright disgraceful 13 per cent. If nothing else, the threat of a comprehensive system of fines will encourage company directors, accountants and others to attach greater priority to filing the returns.