Companies office acts on bad cheques
THE Companies Registration Office is changing its payment processes after a growing number of companies tried to pay fees with cheques that bounced.
"CRO finds that a growing number of dishonoured cheques are being used to pay filing fees and penalties,'' said the organisation. The companies involved are often paying fees for filing their annual returns or accounts late or in an attempt to have their company restored to the register.
But with cashflow problems a huge issue, the CRO will from next week make companies pay by bank draft, postal order or money order when trying to get back on the register quickly.
In many cases, companies are put back on the register when applications are received, but a few days later the cheques are returned unpaid by the bank.
"Cheques in restoration cases tend to be for very large sums,'' the CRO pointed out in its latest update for CRO users.
"In order to address this serious and ongoing problem, as and from 1st December 2010, CRO will no longer accept payment by cheque or payment authorisation forms for filing fees (including penalties) arising in respect of fast-track company restorations'' said the office, which is located in Dublin city centre.
Companies incorporated in Ireland must register and lodge an annual return.