Debts of approximately €160 million were left by 140 insolvent companies whose directors now face restriction proceedings in the High Court.

Some of the companies had debts as large as €10-€15 million, it was disclosed at the publication yesterday of the 2002 annual report of the Office of the Director of Corporate Enforcement (ODCE).

The director, Mr Paul Appleby, said that in most of the 140 cases, the restrictions would be recommended to the High Court by the liquidators of the companies concerned.

Approximately 300 company directors are facing proceedings over the coming months.

Under the terms of the Company Law Enforcement Act 2001, the liquidators of insolvent companies are required to seek the restriction of their directors in the High Court unless relieved by Mr Appleby's office of the requirement to do so.

His office received 290 reports from liquidators last year and decided in 140 cases not to grant relief from taking proceedings.

Yesterday Mr Appleby said that in almost all of the 140 cases the liquidators had in their reports recommended the restriction of the companies' directors.

The liquidators' views will form vital evidence for the High Court hearings.

Under the legislation the "burden of proof" is the reverse of the norm and directors are required to convince the court that they should not be restricted.

Mr Appleby said the aim of his office was to limit the incidence of fraudulent, dishonest and non-compliant behaviour, practices which increased business risk.

The reports which had been received by his office since it was established in 2001, indicated that compliance was a continuing problem, he said.

"Creating a culture of compliance will undoubtedly be a long-term project," he said.

"Misconduct in business will be reduced by active encouragement of compliance and by vigorous enforcement."

The director said that one of the policies being used to encourage change was to "name and shame" directors convicted in the courts of company law offences.

The annual report contains a list of those companies and directors, which were the subject of summary convictions in 2002.

Mr Appleby said he would like to see the maximum fine which could be imposed upon summary conviction, increased to €10,000. The current maximum is €1,900.

The report discloses that the ODCE has been sharing information with a number of other State agencies, including the Garda Síochána, the Revenue Commissioners and the Companies Registration Office.

Information was also passed by the office to the Flood tribunal.

The report also reveals that, during 2002, the ODCE approved three instances of information concerning companies listed on the Stock Exchange being given to inquiries being conducted by authorities outside the State.

The company or companies concerned were not named.