Sir, - The Companies Registration Office is currently in the process of striking off companies from the register at a rate of 500 a day. These strike-offs are an attempt to tidy up the register and to achieve better compliance by company directors in respect of future returns.
However, it appears that in some cases the baby is being thrown out with the bath water. A number of companies have been struck off, even though they still have liabilities outstanding. In these cases, the creditors, including the Revenue Commissioners, have been denied the opportunity of questioning the directors on their stewardship of the company and of seeking an explanation of what has happened to the remaining assets.
While the proposed establishment of a company law enforcement office will improve matters in the longer term, it will be some time before such an office has legislative teeth.
In the meantime, I believe that the Revenue Commissioners should be provided with more resources to check the daily list of strike-off notices and to ensure that any company which owes money to the Revenue Commissioners is not struck off. In the case of these companies, the Companies Registration Office should have a separate programme to ensure that the directors either file the outstanding returns, or, alternatively, put the company into liquidation so that their stewardship of the company may be investigated by the duly appointed liquidator.
I believe that the above steps would generate an increase in tax revenue for the State, and would be appreciated by other creditors. - Yours, etc., Jim Logue,
President, Irish Institute of Credit Management Fitzwilliam Square, Dublin 2.