Complaints to Ireland's corporate enforcement agency rose significantly last year, with nearly 3,000 allegations of misconduct by company officers submitted.
The number of company officers disqualified climbed sharply after the Office of the Director of Corporate Enforcement (ODCE) clamped down on unlawful activity.
In his interim review of 2005, ODCE director Paul Appleby said that 21 officers were disqualified last year, compared with only three in 2004. He attributed the increase in part to improved co-operation between the ODCE, the Courts Service and the Companies' Registration Office.
More than 1,000 people are listed on the disqualified persons' register, meaning that they are unable to run firms in Ireland.
As the ODCE has proved more successful in prosecuting unlawful behaviour, so the number of cases reported to the office has increased. Last year, the volume of alleged misconduct increased by 21 per cent, to 2,869 incidents, according to the report.
Mr Appleby said that, during the year, the ODCE had succeeded in securing a better balance between improving compliance with company law by administrative means and employing civil and criminal enforcement actions in appropriate cases of detected misconduct.
Offences that can lead to disqualification include incidents such as company directors failing to submit annual returns on time and the use of company assets for personal purposes.
During 2005, the ODCE initiated nine proceedings against former directors of National Irish Bank, although only one case was concluded during the year, resulting in a 10-year disqualification. The remaining eight individuals, including former NIB chief executives Jim Lacey and Barry Seymour, are opposing the office's rulings and are arguing their cases in the High Court.
Mr Appleby's office also secured the disqualification of two directors of an insolvent building company and a further 10 directors whose insolvent companies had been struck off the company register for failing to file annual returns. The ODCE also became more active in prosecuting cases, with 40 convictions for violations of company law last year. Fines imposed by the courts in connection with these convictions increased to €35,700 last year, from €21,500 in 2004.
Mr Appleby stressed that to cope with the increased demand for its services, the ODCE needed to take on an additional 20 staff.
"We want to deter, on an ongoing basis, reckless or fraudulent corporate behaviour, so that future conditions for enterprise development remain positive," he said, outlining his plans for the coming year. Over the next 12 months, the office intends to focus on better informing the public about compliance.
He also said he was particularly keen to progress several of the larger ongoing investigations and to expand compliance to include new areas such as audit committees.
"Improving market behaviour remains our key objective," he said, adding that the twin focus on administrative rectification and civil and criminal enforcement actions started in 2005 will continue this year.
During 2005, the ODCE spent €2.89 million running its operations, an increase of almost 6 per cent on 2004. Mr Appleby said that he expected this figure to rise significantly in 2006, as more legal proceedings are brought against offenders.
Mr Appleby also said he was pleased that the initial results of research carried out by the group showed that three-quarters of company directors and accountants consider the ODCE to be effective in carrying out its regulatory and compliance functions.
