CRO set to step up enforcement action – ALG
The Companies Registration Office (CRO) has made clear that it intends to step up enforcement action later this year, according to lawyers at A&L Goodbody (ALG).
This follows the resumption of its involuntary strike-off proceedings last year.
In a note on the firm’s website, the ALG lawyers highlight recently released minutes of a meeting of CRO stakeholders.
The minutes show that, before the end of the year, the CRO intends to:
- Resume prosecutions of companies and directors who fail to file annual returns,
- Begin prosecuting liquidators for non-filing offences, and
- Continue enforcement action, up to and including strike-off, for companies who have failed to file their annual returns.
Annual returns
Directors and companies are obliged to file the form B1 annually alongside financial statements unless an exemption applies.
ALG says that the signals from the CRO align with the increased enforcement activity that the firm has recently observed from the Corporate Enforcement Authority in relation to late filers of annual returns.
The firm notes that, as well as resulting in late-filing penalties, and the loss of audit exemption for private companies if there is a second late filing in a five-year period, the failure to file an annual return exposes the company and directors to fines, enforcement orders, involuntary strike-off proceedings, and prosecution.
In addition, individuals can be disqualified from acting as a director if they are found guilty of three offences of failing to file annual returns, or if they were a director of a company that is involuntarily struck off for failure to file annual returns.
Actions against liquidators
According to ALG, the CRO has signalled that it will target liquidators before the end of 2026.
Before starting prosecutions, however, the CRO will run a publicity campaign to encourage compliance.
It then plans to start prosecuting liquidators who are late and fail to file forms E3 (annual account of liquidators’ acts and dealings where a liquidation is not completed within 12 months) and E4 (liquidators’ statement of account).
Involuntary strike-off
The CRO has been striking companies off the Register of Companies since January using the involuntary strike-off procedure.
ALG says that 200 companies are currently being targeted weekly, with the goal of strike-off proceedings being started against all non-compliant companies by the end of 2026.
The firm urges companies to review their compliance with their obligations to file an annual return.
It adds that liquidators should take action on all outstanding filings or risk prosecution.
“The message is clear: companies, directors and liquidators who are in default should take swift corrective action as a matter of priority,” the ALG lawyers conclude.