Companies to be allocated annual return date

Companies are to be allocated annual return dates from March 1st, 2002. These will be used to calculate the exact date by which a company must file its return.

Under an order bringing further provisions of the Company Law Enforcement Act 2001 into operation, the Tβnaiste Ms Harney has also set in train the introduction of a linkage between the age of accounts filed and the date to which an accompanying annual return has been made up. This latter change comes into effect from October 26th, 2001. The changes are part of the drive to improve the quality and level of compliance with filings to the Registrar of Companies.

The allocation of annual return dates has been put back to March 2002 to allow companies and their financial advisers time to put new systems in place.

The efforts of the Registrar of Companies to improve compliance with filing obligations in recent years has been hampered by the absence of a satisfactory and enforceable system for determining the precise date in each year when a company is required to file its annual return, according to the Department of Enterprise, Trade and Employment.

From October 26th, new powers will also be in place allowing for the levying of progressively larger late filing penalties in respect of late returns made.

Changes to come into effect from yesterday alter the rules surrounding the appointment of liquidators. Until yesterday and by virtue of the Rules of Court, a creditors' nominee for liquidator was selected on the basis of a majority in number and value of the creditors.

The amendment now made means that the creditors' nominee for liquidator will be chosen on the basis of a majority in value only of creditors. "Such an arrangement will more fairly reflect the respective interests of the creditors in the appointment of a liquidator and balance the selection process in favour of those with the greater interest and with the most to lose," according to a statement from the Department.

Another new section introduced yesterday provides that the Registrar of Companies may give a person, who has failed to file a return, a notice to the effect that the offence is alleged against him or her and that, unless a fine is paid within 21 days and the return is filed, proceedings will be instituted.

"This gives the accused the option of paying the fine and avoiding a court case and possible conviction," according to the department. "It will be at the registrar's own discretion whether to prosecute the summary offence or impose the fine."

Another change introduced yesterday provides for the imposition of a fine of up to £500 on persons trading under a name ending with Ltd when not incorporated with limited liability. It also allows for applications to be made to the courts by the Registrar of Companies or the Director of Corporate Law Enforcement, prohibiting such persons from continuing to trade.

The maximum fines and prison sentences which can be imposed by the courts of foot of convictions under the Companies Act, have been increased.