Firms are currently required to list all directors, costing them time and resources
That is because the law requires that in all business letters in which a company’s name appears, it must list all directors and give the nationality of any that are not Irish.
Several companies, including AIB, have now written to Enterprise Minister Peter Burke asking for the rule to be changed.
According to an entry on the Lobbying Register, AIB corporate affairs director Barry Field has asked Mr Burke to allow companies to list their directors on their website rather than on letterheads.
Alternatively, he suggested that an exemption available up until 2022 be reinstated. Section 151 of the Companies Act, which sets out the requirement, had given the minister the power to grant opt-outs.
Big companies say they can have up to six changes of director a year, with stationery having to be redone every time.
“Smaller firms are fine, but some larger ones have a high turnover,” one corporate source said. “This is not a European norm.”
Company stationery can be ordered without any directors’ names printed
The Corporate Enforcement Authority sent out an information notice in 2015 telling firms there were technological solutions to overcome any costs.
“Company stationery can be ordered without any directors’ names printed, but these may be subsequently added when such stationery is used,” it said.
“When printing letters, use may be made of the footer available in electronic word-processing programs such as Microsoft Word.
“Directors’ names can be placed in the footer… and can easily be amended without any need to dispose of stationery.”
The authority also suggested companies could place labels on letters covering the names of ex-directors, “or blanking out the name of a director who has resigned from the company”.
The notice concluded: “These simple measures, it is hoped, can save Irish companies unnecessary expense in the loss of company stationery which has incorrect directors’ names printed.”
The Department of Enterprise said a number of companies have been in touch since the ministerial override facility was removed.
“Section 151 of the Companies Act was amended by the Companies (Corporate Enforcement Authority) Act 2021, which was commenced on July 6, 2022. The department has since received a small number of representations regarding Section 151 from stakeholders,” it said.
“These are being given due consideration as part of the regular ongoing policy development process.”
We have proposed a ‘digital-first’ approach
The Banking & Payments Federation Ireland (BPFI) said the removal of the exemption has a particular impact on businesses with a large consumer base.
“The banking industry has been engaging constructively with the Department of Enterprise on this issue,” it said. “We have proposed a ‘digital-first’ approach, which is in line with the Government’s Digital Public Services Plan as well as the EU Commission’s proposals to simplify operations across the single market.
“This includes the publication of directors’ details on a company’s website, ensuring information is transparent, up-to-date and easily accessible.”
It said France, Italy, Spain and the UK do not require the publication of directors’ details on business letters.
“A digital approach would support competitiveness and bring Ireland into line with the majority of European jurisdictions. It also avoids the environmental impact of destroying large volumes of printed stationery every time there is a change in the composition of a board,” it said
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