1036. Deputy Paul Nicholas Gogarty asked the Minister for Enterprise, Tourism and Employment if he will examine whether individuals who repeatedly dissolve companies while leaving unresolved consumer liabilities should face restrictions on establishing new construction related businesses; and if he will make a statement on the matter. [61233/26]

Limited liability is a fundamental feature of company law and is designed to encourage enterprise by allowing individuals to undertake commercial activity without unlimited personal exposure in the event of business failure. However, the law demands that, in return for the privilege of limited liability, those availing of it act in good faith and abide by minimum requirements of governance, transparency and commercial probity. Company law provides for robust compliance and enforcement mechanisms and sets out the clear legal duties that directors have in respect of insolvency, as well as specific provisions in relation to reckless and fraudulent trading. Responsibility for investigating and enforcing suspected breaches of company law rests with the independent Corporate Enforcement Authority (CEA) under the aegis of my Department.

Under the Companies Act 2014, liquidators of insolvent companies are required to investigate the circumstances of the insolvency, including the conduct of the company's directors, and report their findings to the CEA.

The CEA assesses these reports and may also have regard to information received from other sources, including complaints from members of the public and referrals from other public bodies. Where it appears that directors have not acted honestly and responsibly in the conduct of the company's affairs, the CEA may direct that applications be made to the High Court seeking their restriction or, in more serious cases, their disqualification. The legislation also enables restriction and disqualification undertakings to be accepted as an alternative to court proceedings, with the same legal effect as a court order.

Directors may be restricted or disqualified for a range of misconduct, including failure to keep proper accounting records, reckless or fraudulent trading, failure to have regard to the interests of creditors in the period prior to the company going into liquidation, or other conduct demonstrating that they have not acted honestly and responsibly.

Where directors of insolvent companies fail to appoint a liquidator, fail to file the required annual returns with the CRO and effectively abandon the company, enforcement action, including disqualification proceedings, may arise. More generally, the CEA promotes compliance with company law, investigates suspected breaches and takes enforcement action where breaches are established.

I recognise the concerns that can arise where consumers incur losses following the failure of a company. In an insolvency, consumers will generally rank as unsecured creditors and there may be insufficient assets available to satisfy all claims. While such outcomes can occur in the absence of wrongdoing, company law provides mechanisms to investigate the conduct of directors and to impose restrictions or disqualifications where misconduct is identified.

The Deputy's question relates specifically to situations where individuals repeatedly dissolve companies while leaving consumer liabilities unresolved. The key consideration in such cases is whether directors have complied with their legal duties and acted honestly and responsibly in the management of those companies. Where they have failed to do so, the existing statutory framework provides significant powers to restrict or disqualify them from involvement in companies. These provisions apply across all sectors of the economy, including the construction sector. The Companies Act 2014 does not provide for sector-specific restrictions on the establishment of new businesses. Responsibility for the regulation of building service providers, including matters relating to the Construction Industry Register Ireland (CIRI), falls within the remit of the Minister for Housing, Local Government and Heritage.

Anyone who has concerns regarding a potential breach should bring this information to the attention of the Authority. Complaints, expressions of concern and protected disclosures (where applicable) can be submitted through the CEA's website at www.cea.gov.ie, where full details of its complaints process and contact information are available.