Show/Hide Tags

Irish company law update on the continuation of certain interim measures into 2023's Tags

Tags related to this article

Corporate

Irish company law update on the continuation of certain interim measures into 2023

Published 15 diciembre 2022

The Companies (Miscellaneous Provisions) (Covid-19) Act 2020 (the “Act”) was enacted in order to help companies and societies comply with statutory obligations in circumstances where the pandemic was affecting the ability of businesses to operate normally.

A further extension of two of the temporary measures introduced by the Act has been announced by the Minister for Trade Promotion, Company Regulation and Digital, Dara Calleary TD.

The following measures will continue to be available until 31 December 2023:

virtual general and creditors’ meetings; and
higher monetary threshold (i.e. €50,000) for issuing a 21 day letter of demand.

The following measures will no longer be available after 31 December 2022:

execution of documents under seal in counterpart; and
extension of the examinership process to a total of 150 days (subject to court approval).

In light of the lasting impact of the pandemic on the workplace and, in particular, the shift by many businesses to hybrid working, the extension of the measure allowing companies to hold meetings virtually is a positive development and it would be useful if this measure found its way into the Companies Act on a permanent basis with a view to fostering stronger participation in company meetings.

According to Minister Calleary, the move to extend the application of a higher monetary threshold for statutory demand letters is aimed at “assist[ing] in the ongoing operation of struggling or recovering businesses” and “ensur[ring] that fundamentally viable companies will not be wound up for relatively small debts of €10,000.” Given the current economic climate, it is anticipated that many companies will welcome the extension of this measure.

For more information please contact a member of DAC Beachcroft Dublin’s Corporate & Commercial Team.

Authors

John Darmody

Dublin

+353 (0)1 588 2551

jdarmody@dacbeachcroft.com

Sharon McCaffrey

Dublin

+ 353 (0)1 588 2554

smccaffrey@dacbeachcroft.com

The Arm of Justice Lifts the Corporate Veil – Part II: A Warning for Shadow Directors

By Sharon McCaffrey

In part two of our update on the exceptional case of Powers -v- Greymountain Management Ltd (in liquidation) [2022] IEHC 599, we discuss the High Court’s decision to lift the corporate veil in…