The Compliance Crackdown: Is Your Company Next?

This figure is set to rise. The CRO is now targeting up to 1,000 non-compliant companies per week as it addresses the outstanding backlog that accumulated as a result of enforcement being paused in March 2020 during the Covid-19 pandemic and subsequent IT constraints. Over 6,500 companies currently sit on the strike-off list, teetering on the edge of dissolution unless their directors act fast.

How quickly can this happen? Search4less found that the average gap between a company’s last filed annual return and being struck off is just 2.3 years. Miss two sets of annual returns, and your company could find itself in the CRO’s sights.

Make no mistake: the enforcement landscape in Ireland has fundamentally changed. Recent company law reforms, new regulatory powers, CRO automation, and coordinated regulatory activity have created a new reality where compliance is not optional — it is integral to a company’s survival. Directors should not assume that administrative delays or leniency will continue. The time for proactive review is now. Avoid involuntary strike-off and the associated reputational, operational and personal consequences. While company restoration is possible, it can be costly, time-consuming, and damaging to reputation.

The consequences of involuntary strike off extend beyond the company itself. Ian Drennan, Chairperson of the Corporate Enforcement Authority, has signalled that an increase in director disqualifications is on the horizon. Directors of companies subject to involuntary strike-off are coming under greater scrutiny — and persistent non-compliance could result in serious personal consequences.

Don’t wait until it’s too late. Our company secretarial team at Eversheds Sutherland (Ireland) LLP regularly advises clients on annual return compliance and assists in bringing filings up to date. If you’re unsure about your company’s current filing position — or know there are outstanding obligations — contact a member of our team here today.