Readers should take note that on May 8th, 2023, the Dept. of Enterprise Trade and Employment (DETE) launched a public consultation on proposals to enhance the Companies Act 2014.Please click the link for the DETE press release on the consultation and here to access the consultation. The Institute will be making a submission in response to the consultation on behalf of members and all submissions can be e mailed to companylawconsultation@enterprise.gov.ie .The closing date is no later than 5pm on 9 June 2023.
The consultation is divided into four sections and below you can read a summary of what each section entails.
Corporate Governance section
Proposal to put on a permanent footing the holding of virtual AGMs and general meetings; proposed procedural and legislative changes to the 2014 Act arising from practical problems and anomalies that legal practitioners have encountered in transactional matters such as mergers.
Company Law Enforcement and Supervision section
Proposed amendments to enhance the powers of the Corporate Enforcement Authority (including in relation to obligations on examiners and interim examiners and process advisers and powers of search and entry), IAASA and the CRO. Proposals to streamline procedures, deliver administrative efficiencies and strengthen reporting requirements. Includes in the case of the CRO a proposal to amend the audit exemption regime for small and micro companies and to add additional grounds for strike off.
Also, a proposal to amend the section which deals with investigation of a company’s affairs by a court appointed inspector on the application of a company etc.
Company Law Administration section
Proposals to amend the Companies Act 2014 to enhance the administrative processes carried out by the Registrar of Companies to ensure that the Register provides transparency and is accurate, up to date, and fit for purpose.
Amendments are proposed aimed at modernising certain administrative requirements for companies as recommended by the Company Law Review Group in its Report on Company Law Issues of December 2021.
Corporate Insolvency including the Regulation of Receivers section
Proposals to amend the Companies Act 2014 to align provisions for receivers with the equivalent provisions in the 2014 Act in respect of liquidators.
To provide that receivers are subject to minimum qualifications along the lines of the qualification requirements for liquidators.
To provide that receivers deliver periodical updates to the company and to its preferential creditors in relation to the progress of the receivership.
Setting criteria to which the court shall have regard when fixing a receiver’s remuneration along the lines of the criteria for liquidators.
Proposals in relation to SCARP including that the existing restriction and disqualification regime for directors in respect of insolvent liquidations apply to SCARP.
This information is provided as resources and information only and nothing in these pages purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the pages. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of these pages, we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained in these pages.