The Companies Act 2014, to be commenced in law in June 2015, will introduce a number of reforms with regard to breaches of company law by directors. Company law offences will now be categorised on a scale of 1 – 4, with offences under category 1 and 2 being the most serious and which will be reportable to the Office of Corporate Enforcement (ODCE) by the company’s statutory auditor.

1. Category 1

A conviction on indictment can result in imprisonment of up to 10 years and or a fine of €500,000. A summary conviction can result in imprisonment of up to 12 months and a fine of up to €5,000.

2. Category 2

A conviction on indictment can result in a term of imprisonment of up to five years and or a €50,000 fine. A summary conviction can result in imprisonment of up to 12 months and a fine of up to €5,000.

3. Category 3

Summary conviction only which can result in imprisonment of up to 6 months and a Class A fine, presently up to €5,000.

4. Category 4

Summary conviction only which can result in a Class A fine, presently up to €5,000.

What Questions Do You Have?

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