By Shannon Power, 1st August 2023
Company Bureau has been informed that the Companies Register Office (CRO) has begun issuing 10 Week Warning Letters to those who have not fulfilled their annual returns/compliance requirements, notifying them of the potential consequences of non-compliance. In this blog post, we will delve into the implications of these warning letters and highlight the proactive measures businesses can take to protect their interests.
The 10-Week Warning
The Companies Register Office has taken a firm stance on non-compliance, signalling its intention to enforce strict actions against companies that fail to meet their annual return and compliance requirements. A notable development is the issuance of 10-week warning letters to companies that have fallen behind. Such a warning serves as a crucial reminder to bring their affairs up to date promptly. Ignoring this warning can lead to dire consequences.
The consequences of not adhering to annual return and compliance requirements can be severe. The CRO has the authority to take enforcement measures, which may include Involuntary Strike-off, Company and/or Director Prosecutions, or Section 797 (High Court) action against the company and its directors. The risk of Involuntary Strike-off can result in the loss of limited liability protection, leading to personal liability for the company’s debts. Additionally, any remaining assets may become the property of the Minister for Public Expenditure and Reform.
To further stress the importance of compliance, the CRO can prosecute and convict companies for failing to file annual returns on time. The penalties for each offence can amount to a substantial sum of up to €5,000. Furthermore, directors who accumulate three convictions may face disqualification from managing any company, impacting their professional reputation and future career prospects.
Proactive Approach to Compliance
The path to avoiding these enforcement actions is simple: ensure your company’s compliance and annual returns are filed within the allotted time. The 10-week warning period provides companies with an opportunity to rectify any non-compliance issues before facing harsh consequences. Companies must diligently keep track of their filing deadlines and fulfil their obligations in a timely manner.
Maintaining accurate contact information with the CRO is vital to receive critical notifications directly. Businesses are encouraged to keep their email addresses up to date in the CRO’s records to ensure they receive all relevant communications promptly.
Our Annual Returns Filing Services
To make compliance more manageable for businesses, we offer expert Annual Returns Filing Services. Our experienced team ensures that your company’s annual returns are accurately and promptly filed with the CRO, sparing you the risk of enforcement actions and penalties.
To further aid companies in staying compliant, our Annual Return Late Filing Fee Calculator helps determine the potential late filing fees associated with delayed submissions.
Disclaimer This article is for guidance purposes only. It does not constitute legal or professional advice. No liability is accepted by Company Bureau for any action taken or not taken in reliance on the information set out in this article. Professional or legal advice should be obtained before taking or refraining from any action as a result of this article. Any and all information is subject to change.