Pearse Trust Blog

Arbitration is a process whereby parties to a contract submit disputes arising between them to an independent third party for resolution.  The basis of all arbitration is the agreement of the disputing parties to arbitrate.  The contract forming the basis of the dispute may contain a binding arbitration clause obliging the parties to submit to arbitration, or alternatively, disputing parties may opt by way of Submission Agreement to arbitrate their disputes as they arise.

The Office of the Director of Corporate Enforcement published information briefings on various Company Law matters in November 2011, one of which covers the principal duties and powers of a Company Secretary under the Companies Act 1963-2009.

One year into its three-year programme, the Troika praised the Irish Government for implementing wide-ranging reforms to restore the health of the financial system and to enhance competitiveness, growth and job creation and agreed to release its next tranche of funding. The Troika have also begun to work with the Irish Government on a technical paper exploring ways to reduce the cost of Ireland’s banking bailout. The Troika concluded that the programme is "on track, but challenges remain and continued steadfast policy implementation will be key." Ireland’s budget consolidation is on a "clear path" to reach the 3% of GDP deficit target by 2015.

The Criminal Justice Act 2011, enacted in August 2011 seeks to facilitate more effective investigation and prosecution of white collar crime in Ireland. The foregoing Criminal Justice Bill was fast-tracked by the Government to contend with the significant difficulties and delays encountered in the course of investigations of the suspected corporate criminality which generated the Irish banking crisis. The offences addressed are of a ‘serious and complex’ nature and attract penalties of at least five years’ imprisonment.

Section 232 of the UK Companies Act 2006 provides that any provision, whether contained in the Company’s Articles of Association or otherwise, which releases a Company Director from his liability in respect of negligence, default, breach of duty or breach of trust in relation to the Company is void. However, Section 233 states that this does not prevent a Company from purchasing and maintaining insurance for a Director of its Company, or its associated company, against the above listed liabilities.

The Scope Of Directors’ & Officers’ Insurance

Directors’ & Officers’ (D&O) insurance may be purchased and maintained by Companies in order to afford financial protection to Directors and Officers from claims which may arise as a result of decisions they take while carrying out their duties and acting on behalf of the company. The insurance will cover the defence costs and financial losses of such claims.  

A report published in November 2011 by Graham Aaronson QC has recommended that the UK Government should introduce a narrowly focused general anti-abuse rule (GAAR) in order to combat tax avoidance.
Mr Aaronson’s report arrives after an eleven month review and consultation with an advisory committee of industry experts on the possibility of introducing a GAAR in the UK tax system.

Mr Aaronson believes that a narrowly focused GAAR would have a range of benefits.

The Irish Government has in its recent December budget announced an increase in the standard rate of VAT in Ireland from its current 21% to 23% with effect from 1 January 2012. Many other EU countries have also increased their VAT rates over the past two years.

A Disqualification Order issued in 2007 to Mr. Barry Seymour by the High Court has been overturned following an appeal to the Supreme Court.