NEARLY 60 directors were restricted from acting as directors last year, five times the figure in 1994, the Companies Registration Office (CRO) report has found. It also says there has been a dramatic increase in the number of fines imposed on directors for not filing annual returns.

The report says that 57 directors were restricted from acting as directors for up to five years. It also says 626 companies were prosecuted for failing to file annual returns, resulting in 546 convictions.

The courts imposed fines of Pounds 37,675 on directors who failed to file annual returns, compared with a total of Pounds 11,700 in the previous 18 month reporting period.

The report also shows that the majority of companies in liquidation last year were there as a result of a creditors voluntary winding up, in contrast to the 1970s when the majority were as a result of a shareholders winding up.

Liquidators who do not file returns to the Companies Office when they have completed liquidations may face prosecution, the report warns. Liquidators who are constantly in arrears with a number of liquidations are usually warned that legal action may be initiated.

"One such case is currently in the hands of the Chief State Solicitor and an exercise to prosecute liquidators who do not fulfil their obligations may ensue", the report says.

Last week one of the first such cases was taken in Cork against Mr Brian Callinan, who was liquidator to Emerald investments. He was fined Pounds 300 for failing to call creditors' meetings and failure to file statutory returns in 1994 and 1995.

The number of new companies registered increased by 3 per cent, compared to 1994. There was also a marked increase in the number of unlimited companies registering. Twelve per cent are now in this category which the report says has increased markedly since 1988.

Just under 780 companies went out of business last year, a decrease of 5 per cent the report says.

It also notes that there are almost 2,000 single member limited liability companies in existence.

The CRO also found that at least 40 per, cent of the documents it receives by post are returned to the presenter because of omissions and incorrect information.

The CRO says its ability to develop a satisfactory service to its customers or to perform its basic statutory duties has been curtailed for some time because of insufficient staff resources, inadequate and unsuitable accommodation and an outdated computer system.

These issues are being addressed but the benefits will not be seen until well into 1997, according to the CRO.