ODCE Interim Report
Author:
Simon Magennis
On 10 January 2004 ODCE pubished its Interim Review of ODCE Activity in 2003. According to the Director, Mr Paul Appleby, perhaps the most significant feature of 2003 was the continuing increase in reported non-compliance with company law which is attributable in part to the greater awareness which now exists of the duties and obligations of companies, company directors and others. In 2003, the ODCE dealt with or received over 3,000 regulatory issues or complaints of possible corporate misconduct (up from approximately 1,300 in 2002). Over 2,000 of these matters were closed or otherwise determined last year (up from approximately 600 in 2002).
Auditors ready to meet obligations - ICAI Commenting on the on the rise of reports by auditors of company law breaches to the ODCE from 399 in 2002 to 1500 in 2003, the ICAI said it proved that accountants and auditors are prepared to meet their reporting obligations when those obligations were clear and concise. However, the Institute also said that there was some way to go before satisfactory reporting arrangements were in place in other areas where auditors and accountants face reporting obligations. ICAI Chief Executive, Brian Walsh, said "We were happy to work with ODCE in 2002 in preparing the guidelines for accountants and auditors on their reporting obligations and the figures for 2003 show what can be achieved when there is clarity and effective guidance and when we work together. However, these reporting obligations are only a small number of those being faced by accountants and auditors. Our members face additional reporting obligations under tax, company and criminal law. The nature and form of the reports to be made and the bodies to be reported too are similarly varied. In some cases the same offence has to be reported to different bodies. “ICAI has been calling for some time now for the harmonisation of these reporting obligations so that accountants can be clear about their responsibilities. The current position is a quagmire. This is one of the first issues we will be bringing up with the new Irish Auditing and Accounting Supervisory Authority when it is established on a statutory basis."
Transactions involving Directors As referred to in the Interim Report, the ODCE has published Transactions Involving Directors, guidance that seeks to assist and facilitate company directors, secretaries and managers in ensuring compliance with the legal provisions governing such transactions and which was issued in response to evidence that the relevant company law provisions designed to prevent misuse by directors of company assets were not being observed in many cases. The ODCE will continue to deal with issues of non-compliance in a number of ways including: •the issuing of letters warning directors of the consequences of any repetition of these breaches: •initiating civil proceedings with a view to protecting shareholders' and creditors' interests; •initiating criminal proceedings with a view to sanctioning wrongdoing; and •where appropriate, notifying the Revenue Commissioners of matters potentially relevant to the discharge of their functions. The Interim Report and Transactions involving Directors are both available on the ODCE website,
www.odce.ie