Companies (Miscellaneous Provisions) (COVID-19) Bill 2020

Jul 24, 2020
  • Some of the main changes proposed include:
  • Companies and industrial and provident societies will have until the end of 2020 to hold their annual general meetings, instead of within the timeframe required under the law, e.g. nine months from year-end for companies.
  • Companies will be explicitly enabled to convene and hold virtual general meetings, both AGMs and EGMs.
  • The Bill addresses the practical issue of sealing by companies where the company seal is in one location and the directors and secretary are in other locations.  
  • In the same way, creditors’ meetings to commence a winding up and for examinerships will be able to be held by virtual means.
  • The Court is to be given power to extend the period of protection for examinership to 150 days in certain circumstances, 50 days beyond the current 100 day limit.
  • The amount claimed by a creditor to initiate a creditors’ voluntary winding up is to be increased to €50,000, an increase from the current levels of €10,000 for a single creditor and €20,000 for creditors acting together.
  • A modification to the exemption to the general stay on legal action on a winding up to allow employees proceed with Workplace Relations Commission claims.
  • Most of these amendments would only remain operative until 31 December 2020 with a potential extension to 30 June 2021.