Two brothers, Colum and Ciaran Butler, have secured a stay on a court order that barred them from acting as directors of companies. This decision follows a judgment issued by Ms Justice Nessa Cahill, which determined that the brothers had not sufficiently demonstrated responsible management of their company, Downtul Ltd. This company previously operated a Starbucks franchise at St Stephen’s Green in Dublin.

Downtul Ltd was placed into voluntary liquidation in November 2022, leading to the court’s restriction on the Butler brothers from serving as company directors or secretaries for a period of five years. The ruling specified that they could only resume such roles if any new company had a minimum share capital of €100,000 or €500,000 for a public limited company, as outlined in the Companies Act 2014.

Legal Proceedings and Arguments

The Butler brothers’ legal representation applied for a stay on the court’s order, arguing that they needed time to reorganize their business affairs. Counsel Brian McGuckian highlighted the extensive involvement of the brothers in the corporate sector, noting that Ciaran is a director of 134 companies and Colum oversees over 170 companies.

McGuckian sought a six-month stay, citing the necessity for the Butlers to arrange their affairs properly. He also mentioned that the court typically grants directors time to comply with similar orders. The opposing counsel, Padraic Lyons SC, representing the receiver, contended that while a stay for organization was reasonable, the six-month duration was excessive.

Judge Grants Four-Month Stay

Ms Justice Nessa Cahill ultimately granted a stay of four months for the Butlers to organize their affairs, but did not allow for a stay pending a potential appeal against the High Court ruling. She clarified that the stay would maintain the same conditions as if she had approved a stay pending an appeal.

The judge emphasized that it was up to the Butlers to present any grounds for an appeal if they chose to pursue that route. While the court acknowledged the need for the brothers to manage their business responsibilities, it also highlighted the importance of providing the necessary legal framework for their future operations.

As the Butler brothers move forward, the implications of this legal decision will be closely monitored, particularly given their significant roles in managing various prominent franchises in Ireland.

A recent survey by the hiring software firm Greenhouse reveals that artificial intelligence (AI) is reshaping the job market in Ireland, creating both opportunities and heightened competition among job seekers. Conducted among 2,200 candidates globally, including 169 Irish-based workers, the survey highlights the complex impact of AI on employment dynamics amid ongoing economic uncertainty.

The findings indicate that 73% of Irish workers are leveraging AI tools in their job search. The primary uses include preparing for interviews, cited by 42% of respondents, analyzing job advertisements at 28%, and generating work samples at 25%. While many see value in AI assistance, there are concerns about its implications for job security. Nearly half of the surveyed Irish workers reported feeling insecure in their current roles, and 42% described the job market as very competitive.

According to Greenhouse’s Chief Executive Officer, Daniel Chait, hiring practices are currently “stuck in an AI doom loop.” He elaborated that as AI technology progresses, it simplifies the application process, which floods the system with applications and diminishes clarity for job seekers. This is particularly challenging for younger candidates, with 25% of Generation Z respondents stating that AI has made it more difficult for them to distinguish themselves from other applicants.

Despite the advantages AI offers, the survey also reveals that 54% of Irish job seekers feel the technology is complicating their search by raising skill requirements and intensifying competition. Interestingly, 41% of respondents acknowledged that AI has helped uncover new job opportunities, indicating a dual impact on the job search experience.

A significant finding from the survey is the lack of guidance from employers regarding the use of AI in the application process. A staggering 82% of workers reported that employers provided little to no direction on how to effectively incorporate AI in interviews. This uncertainty further complicates the already challenging landscape for job seekers.

In terms of fairness during the application process, 49% of Irish candidates disclosed experiencing inappropriate or biased questions. The most frequently reported inquiries related to health or disability status at 21%, parental responsibilities at 20%, and age at 18%. Additionally, 69% of respondents admitted to omitting older experiences from their CVs to avoid age-related biases.

These insights underscore the evolving role of AI in the job market and its implications for workers. As businesses increasingly adopt AI technologies, the need for transparent guidance and equitable hiring practices becomes paramount to ensure a fair and accessible job market for all.

Almost 40,000 companies in Ireland are at risk of being struck off due to non-compliance with regulations requiring the disclosure of beneficial ownership details. The Companies Registration Office (CRO) now holds the authority to take action against these firms, which have failed to submit the necessary information as mandated by law.

The Register of Beneficial Ownership (RBO) was established under the EU’s fourth money laundering directive, known as MLD4. This directive aims to enhance transparency in the corporate sector across the European trading bloc. All companies and societies within member states are required to maintain accurate records of their beneficial owners. The initial deadline for submitting this information was in November 2019, yet a significant percentage of firms have still not complied.

Currently, between 10 and 12 percent of companies and societies in Ireland have not filed their required ownership details. This oversight could lead to fines of up to €500,000. Individuals who knowingly make false statements to the RBO may face prison sentences of up to 12 months.

At a recent stakeholder meeting, the CRO indicated that the process for initiating strike-offs would begin soon, although no specific timeline was provided. Initially, non-compliant firms will receive warnings before the CRO proceeds with any necessary sanctions.

While the number of firms failing to file ownership details is significant, prosecutions remain relatively rare. The RBO began taking legal action against non-compliant entities in the second quarter of 2022. That year, five companies were charged for not meeting filing requirements, each receiving a fine of €3,000. In the subsequent year, cases against 15 entities were heard, resulting in eight convictions and seven guilty pleas, with the Probation Act applied in several instances.

During the CRO’s stakeholder meeting last month, it was noted that one case was recently heard, leading to a conviction, while five additional cases were scheduled for discussion. The enforcement process for striking off companies due to failure to file ownership details is expected to follow a similar structure to that used for companies that do not submit annual returns on time. Typically, this involves a 10-week warning issued via email, followed by a formal strike-off notice sent to directors at their home addresses.

In a significant change, public access to the Irish RBO was restricted in 2022 following a ruling by the European Court of Justice. The court determined that unrestricted access to such registers conflicted with privacy rights protected under the General Data Protection Regulation. As a result, the public currently has limited access to the Irish RBO. Last year, only one request was made to obtain details of a company, which was subsequently denied.

The impending crackdown on non-compliant firms highlights the ongoing efforts to enhance transparency and accountability within the corporate sector in Ireland.

Almost 40,000 companies in Ireland face the risk of being struck off for failing to submit mandatory details regarding their beneficial ownership. This enforcement action is spearheaded by the Companies Registration Office (CRO), which has the authority to sanction firms that do not comply with legal reporting requirements.

The Register of Beneficial Ownership (RBO) was implemented in accordance with the EU’s fourth money laundering directive, known as MLD4. This regulation mandates that all businesses within the EU submit information about their beneficial owners, contributing to enhanced transparency in corporate governance. The initial deadline for companies to file these ownership details was in November 2019.

According to the CRO, approximately 10% to 12% of companies in Ireland have not complied with this requirement. As a result, these firms are now at risk of sanctions, which may include fines of up to €500,000. Individuals who knowingly provide false information to the RBO could face imprisonment for up to 12 months.

At a recent stakeholder meeting, the CRO did not disclose an exact timeline for initiating strike-offs. However, officials confirmed that the process will commence shortly. Initially, non-compliant entities will receive a warning, after which the CRO will manage any necessary strike-offs.

Despite the significant number of companies at risk, prosecutions remain relatively rare. The RBO began legal actions against non-compliant firms in the second quarter of 2022. During that year, five companies were charged for failing to file the required details, each receiving a fine of €3,000. Furthermore, cases against 15 entities were heard in 2023, resulting in eight convictions and seven guilty pleas.

The enforcement process for striking off companies for not submitting ownership details is expected to follow a similar protocol used for those that have failed to file annual returns. This typically involves a 10-week warning letter sent to the company’s email address, followed by an involuntary strike-off notice dispatched to directors at their home addresses.

In a notable shift, public access to the Irish RBO was restricted in 2022 following a ruling by the European Court of Justice. The court determined that unrestricted public access to beneficial ownership registers conflicted with privacy rights outlined in the General Data Protection Regulation (GDPR). Consequently, public access to the RBO is now limited, with only one request made last year for details about a company, which was ultimately rejected.

The CRO is taking steps to ensure that compliance with the RBO is enforced and that businesses understand the importance of reporting ownership details accurately. As the process unfolds, further updates regarding timelines and actions against non-compliant entities are anticipated.