Prosecutions of "errant companies and directors" are to begin "on a widescale basis throughout the State" over the next few weeks, Mr Noel Treacy, Minister of State for Enterprise, Trade and Employment, said yesterday. The prosecutions are linked to an exercise being carried out by the Companies Office in which 500 notices per day are being sent out to companies which have filed inadequate returns. Mr Treacy told a seminar on company law that an "appalling" compliance rate of 13 per cent had been found in relation to filing requirements to the Companies Office.

"As you know, compliance with the reasonable requirements of the Companies Acts extends to companies quoted on our stock exchange. I am aware that a number of mid-cap companies listed there have failed to file statutory returns with the Companies Office."

Mr Treacy said an examination by his Department of sometimes confidential inquiries, which have been carried out under company law, has identified deficiencies in accounting procedures, disclosure of beneficial interests and inadequate or delayed completion of various registers.