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PUBLICATION OF THE ODCE’S 2013 ANNUAL REPORT
The Office of the Director of Corporate Enforcement (“ODCE”) has today published its Annual Report
for 2013. In discharging its statutory mandate during the year, the ODCE delivered a range of tangible
outputs, the combined effect of which was to contribute to:

assisting stakeholders to comply with their obligations and vindicate their rights respectively
under company law; and

confronting, and dissuading further, irresponsible and non-compliant behaviour.
Notable contributions in that regard included:

the publication of 6 new guidance and information documents for stakeholders’ benefit;

securing rectification, on a non-statutory basis, of directors’ loans issues to an aggregate
value of in the order of €62m;

successfully securing, in 230 cases, compliance on the part of a range of parties with their
obligations under the Companies Acts through more formal measures;

securing the disqualification of 25 individuals, and the restriction of a further 3, on foot of High
Court applications made by the Office;

the restriction of 219 company directors, and the disqualification of a further 9, on foot of
liquidators’ applications to the High Court subsequent to the ODCE having scrutinised the
underlying liquidators’ reports; and

the securing of 17 criminal convictions in the District Court, together with 2 associated
disqualification orders.
Marking the publication of the Report, Director of Corporate Enforcement, Mr. Ian Drennan,
commented as follows:
“In our 2012 Report, we indicated that, having regard to a range of relevant factors, including
the non-discretionary nature of certain of our statutory responsibilities and the consequential
implications for other discretionary workstreams, we must seek to apply our resources in the
most effective manner possible.
In that context, during 2013 we devised and implemented a set of high level Enforcement
Principles, which seek to articulate the principal considerations that inform the Office’s
enforcement-related decision making. The application of those Principles will result in a more
consistent approach towards enforcement-related activity, with our limited resources being
focussed on those cases most likely to maximise the Office’s effectiveness in seeking to
achieve its statutory objectives.
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Insofar as criminal enforcement activity is concerned, the application of those Principles is, in
keeping with our broader ambitions, likely, to the extent practicable, to result in a gradual shift
away from summary prosecutions in the District Court in favour of prosecutions on indictment.
Whilst the implications of such a change in direction are significant, successful outcomes
would generally be expected to have a significantly greater deterrent effect. We do, of course,
intend to maintain a presence in the District Court where considered to be consistent with our
broader enforcement objectives.
Civil measures are another key enforcement tool at our disposal. In that context, during 2013,
considerable efforts were devoted to seeking to conclude a number of strands of long running
litigation to which the Office has been party. For the most part, those efforts have proven
successful, with the litigation relating to Bovale Developments having resulted in the
disqualification of that company’s directors for a period of 7 years each.
With the recent conclusion of the trial relating to section 60 of the Companies Act 1963, which
has been enormously resource intensive, the Office’s Anglo-related focus has now shifted to
the remaining strands of investigation that resulted in files being submitted to the Office of the
DPP. Our highest priority in that regard now is to support the Office of the DPP in its
prosecution of alleged breaches of section 197 of the Companies Act 1990, in respect of
which a trial date has been set. Supporting a prosecution on indictment, including assisting
the prosecution in meeting its disclosure and other obligations, is a major undertaking and,
consequently, we can reasonably anticipate being involved in these matters for some
considerable time to come – with consequential implications for our other workstreams.
In that context, it is worth noting that, against a backdrop of strategic and associated
organisational changes, a continued large scale involvement in Anglo-related litigation and
efforts to conclude long running civil litigation, the Office successfully secured the rectification
of directors’ loans issues to the value of €62m, compliance with the Companies Acts in 230
instances, the disqualification and restriction of 25 and 3 persons respectively; and 17
criminal convictions. In addition, 219 company directors were restricted and a further 9
disqualified on foot of liquidators’ applications made to the Courts subsequent to the Office
having scrutinised the underlying liquidators’ reports.
These outcomes are attributable to the commitment and dedication of the Office’s staff, and,
in particular, their willingness to continue to embrace change and to assume significant
additional levels of responsibility.”
Media enquiries should be directed to:
Mr. Kevin Prendergast
Head of Enforcement
Office of the Director of Corporate Enforcement
+353 1 858 5844 (W) +353 87 229 6828 (M)
kevin_prendergast@odce.ie
Office of the Director of Corporate Enforcement
27 May, 2014
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NOTE FOR EDITORS
Office of the Director of Corporate Enforcement (“ODCE”)
Staff complement
The ODCE has a staff complement of 42.9 whole time equivalents. Included in that complement are6
solicitors, 1 accountant and 6.5 members of An Garda Síochána.
Financial allocation and outturn
Whilst the ODCE’s budget for 2013 was set at €5.38m, its actual expenditure for the year was €3.12m
(58% of allocation). The savings realised arose as a consequence of:

staff reductions during the year; and

the non-crystallisation of certain legal costs that had been anticipated as being likely to arise
during the year.
Principal sources of the ODCE’s work - 2013
External inputs
Whilst the various categories of principal inputs are not always directly comparable, the following
gives a broad overview of the principal sources of the ODCE’s work during the year under review.
2013
Liquidators’ initial reports regarding insolvent companies
Liquidators’ subsequent reports
1,226
577
2013
%
2012
1,803
78.2
1,787
Complaints from members of the public
252
10.9
337
Auditors’ indictable offence reports
203
8.8
157
38
1.7
72
0
0
7
10
0.4
2
0
0
1
2,306
100.0
2,363
Referrals from external parties
Professional Bodies’ indictable offence reports
Liquidators’ reports regarding possible criminality
Reports under the Criminal Justice Act 2011
Total
Internal inputs
Whilst, by virtue of their volume and, in many instances their statutory nature, most case files opened
are opened in response to external inputs, the ODCE also generates inputs internally through a
proactive approach to enforcement. Inputs in that regard include, for example, initiatives relating to:

dissolved insolvent companies;

the supervision of liquidators; and

other investigations and enquiries commenced on own initiative.
During the year under review, a total of 107 internal inputs were generated.
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Enforcement Principles
The high level Principles that will be had regard to in determining the most appropriate enforcement
action to be applied in any particular case include:

the scale and gravity of the issues involved;

the wider potential impact of the apparent misconduct;

the potential for further misbehaviour by the individual/entity;

the wherewithal of the complainant, where there is one, to resolve the underlying matter(s)
without recourse to the Office;

the probability of achieving a positive outcome; and

public interest considerations.
Director of Corporate Enforcement – Biography
Ian Drennan was appointed to the position of Director of Corporate Enforcement by the Minister for
Jobs, Enterprise & Innovation in August 2012. For the previous eight years, he was Chief Executive
Officer of the Irish Auditing & Accounting Supervisory Authority (“IAASA”). He has previously held
positions in the Office of the Comptroller & Auditor General, the Department of Finance and a number
of Dublin-based accountancy practices. A native of Dublin, he is a Fellow of both the Association of
Chartered Certified Accountants and the Institute of Certified Public Accountants in Ireland.
ENDS/
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