INM inspection cost CEA almost €6 million
The head of the State’s corporate watchdog has rejected suggestions that the fall-out from its investigation into the affairs of media company INM will make it reluctant to appoint inspectors in future.
The inspectors’ report on INM was published last year, and the Corporate Enforcement Authority (CEA) ultimately decided that no enforcement action would be taken arising from the report.
Writing in the CEA’s annual report, Drennan also referred to media reports that the inspection into the affairs of media group INM could ultimately cost the State around €40 million.
“The actual cost of the inspection was €5.82 million, and no additional expenditures or liabilities that might increase that amount in any meaningful way have eventuated since that time,” he stated.
“Should circumstances arise in the future in which the CEA were to take the view that an application to the High Court for the appointment of Inspectors was warranted, the CEA would not hesitate to do so,” Drennan added.
Liquidators’ reports up 23%
The annual report shows that the authority secured 98 restrictions and 22 disqualifications of company directors last year.
The CEA examines liquidators’ reports to determine whether the directors of insolvent companies should face restrictions or disqualification.
Last year, it received almost 1,000 liquidators’ reports – up 23% from 2023 and the highest figure since 2016.
Drennan said that, based on the watchdog’s analysis of such reports, contributory factors to the increase in insolvency levels included the discontinuation of Revenue’s Debt Warehousing Scheme and the ongoing impact of increased energy and other costs.
The CEA’s examination of liquidators’ reports resulted in a total of 98 restrictions (comprising 88 individual company directors, some of whom were restricted in respect of more than one company), with a further 20 individuals being disqualified from acting as company directors.
This represented increases of 44% and 43%, respectively, over 2023.
CRO suspension
The CEA also takes enforcement action against company directors who have allowed insolvent companies to be struck off the register of companies for non-filing of statutory returns.
There were only two director disqualifications in this category last year, however, as activity was affected by the suspension of the Company Registration Office’s programme of strike-offs.
This compares with around 20 disqualifications a year in the years where the strike-off programme was fully operational.
During 2024, three individuals were convicted of criminal offences following CEA investigations.