In response to client queries, below is a brief comment on some of the responsibilities of the Corporate Enforcement Authority (CEA)

Encouraging compliance with company law

I think it is always challenging for any Authority that is required to encourage compliance but must then prosecute where compliance fails.  Just think of the Charities Regulatory Authority which is supposed to help Charities get set up and then prosecute the same Charities when they fail.  Whilst the CEA endeavours to fulfil its responsibility to encourage compliance by way of publishing leaflets it is still (and probably always will be) seen as primarily focused on enforcement.  Given its name that is probably no surprise!

Investigating suspected breaches of company law

Suspected breaches are usually brought to the attention of the CEA by a vast range of individuals and organisations such as Officers or Members of a company, Receivers, Liquidators, Auditors, Accountants, Companies Registration Office, An Garda Síochána, and Revenue Commissioners.  Do not underestimate the level of communication between State Bodies as falling foul of one will almost inevitably bring an errant individual or company to the attention of another.  Just look at the enhancement of powers granted to the CEA with the commencement of the Companies (Corporate Governance, Enforcement and Regulatory Provisions) Act 2024.

Taking appropriate enforcement action in response to non-compliance with company law

As with most Regulatory Authorities the CEA is likely to issue warnings so that steps can be taken to rectify an issue before escalating the issue further.  If that does not work the CEA can then take companies and individuals to Court. Since its establishment in 2022 the CEA has sought and obtained orders against individuals and companies in a variety of areas such as, accounting offences, acting as a Director whilst disqualified, theft, fraud and money-laundering.

Hopefully the above brief comments have left you enlightened rather than just afraid! As always, KomSec is here to help you comply in full with all your obligations.