Judge critical of companies' failure to file returns

A High Court judge yesterday highlighted the "paucity of information" advanced by companies to explain their failure to meet their statutory obligations to file annual returns.

Mr Justice Peter Kelly said it was time that people realised that being a company director involves more than "simply having a title to put on a business card".

Every week the courts were facing six to twelve applications by companies to be restored to the Register of Companies, he said.

Many of those companies would have been struck off for failing to file annual returns. In many cases, the failure to file returns is put down by the companies involved to "inadvertence".

Yesterday, Mr Justice Kelly said that company directors are obliged to inform themselves of the duties involved in holding such positions.

He was speaking after dealing with an application by a Co Kildare company to be restored to the Register of Companies.

The judge remarked that it was "fantastic" that the company, TJS Fastfood Restaurants (Ireland) Limited, which had failed to file annual returns for the years 199297 and was struck off the registrar of companies as a result, could have still applied for, and secured, its intoxicating liquor licence every year.

The company was incorporated in 1991. Its registered offices are situated at Main Street, Newbridge, and it carries on business at Main Street, Rathangan, Co Kildare. The company was struck off the register in December 1996 for failing to file returns.

In court yesterday, Mr Justice Kelly was told by counsel for the company that the company directors - Mr Thomas Maloney, of Boraderra, Monasterevin, Co Kildare, and Ms Jacqueline Maloney - had not been aware of their obligations and were not very "au fait" with business practice.

The reason for the company's failure to make returns was due to inadvertence on the part of the directors, it was stated. The company continued to carry on business, and continues in business, and the requisite returns have since been filed.

In an affidavit, Mr Maloney said all the conditions for the restoration of the company to the register have been complied with. He said neither he nor others associated with the company had noticed advertisements in Iris Oifigiuil in 1996 indicating the company would be struck off within one month unless cause be shown to the contrary.

In light of the fact the Registrar of Companies and the Chief State Solicitor's officer had consented to the company being restored to the Register and nothwithstanding the "paucity of information" to explain the failure to file returns, the judge said he would make an order granting the company's application.