The Corporate Enforcement Authority: A Welcome Development In Tackling White Collar Crime

• Published date: 19 May 2022
• Subject Matter: Corporate/Commercial Law, Criminal Law, Corporate and Company Law, White Collar Crime, Anti-Corruption & Fraud
• Law Firm: Dillon Eustace
• Author: Mr John O'Riordan and Rachel Turner

The Companies (Corporate Enforcement Authority) Act 2021 ("the Act") was signed into law on 22 December 2021 and is currently awaiting commencement by Ministerial Order.

The purpose of the Act is to establish an independent statutory agency - called the Corporate Enforcement Authority ("CEA") - to replace and perform the functions currently performed by the Office of the Director of Corporate Enforcement ("ODCE"). The CEA will have greater autonomy and enhanced resources to investigate and prosecute alleged breaches of company law in Ireland. Director of Corporate Enforcement, Ian Drennan, has remarked that the Act constitutes "a watershed moment in Ireland's strategic approach towards addressing economic and white collar crime."

Although outside the scope of this article, in addition to the establishment of the CEA, the Act also makes amendments to the Companies Act 2014 to address some of its perceived anomalies.

The Corporate Enforcement Authority

Composition

The ODCE operates under the umbrella of the Department of Enterprise, Trade and Employment and has a single Director. By contrast, the CEA will be a standalone corporate body and is designed to be structured as a commission with up to three full-time 'members', one of whom is to be designated as the Chairperson of the CEA.

The intention is that all existing ODCE staff will transfer automatically to the CEA once it is established. The CEA will then have the power to appoint its own staff with the skills and expertise it deems necessary, as opposed to having its staff assigned by the Department. The Act also provides that members of An Garda Síoch'na may be seconded to the CEA.

Powers

The CEA's functions set out in the Act generally mirror the existing functions of the ODCE, with some modifications to reflect the new structure. The Act does not grant the CEA any significant additional powers.

The primary powers of the CEA will include: the enforcement of the provisions of the Companies Act and the investigation of suspected breaches; the prosecution of summary offences and referral of indictable...