Companies Bill 2021 passes through Oireachtas
A new Bill which will be shortly signed into law by
The Companies (Rescue Process for Small and Micro Companies) Bill 2021 has passed through all legislative stages in the Oireachtas and will now be sent to the Office of the President for signature and enactment into law.
The Bill amends the Companies Act 2014 to provide for a new dedicated rescue process for small and micro companies.
It delivers on an important Programme for Government commitment and ensures that these companies now have access to a new rescue framework - the Small Company Administrative Rescue Process (SCARP).
The administrative rescue process mirrors key provisions of the existing examinership process including the repudiation of onerous contracts, cross-class cram down of debts, and encourages ongoing creditor engagement.
The process also allows companies to apply for a stay on proceedings and is designed to be more cost efficient and capable of conclusion within a shorter period of time.
“I am pleased to announce that the Bill has now successfully passed all stages in both Houses of the Oireachtas, where it received overwhelming support, and will shortly become law,” said Minister for Trade Promotion, Digital and Company Regulation, Robert Troy.
“This Bill is the culmination of a year-long effort to ensure that we have in place the necessary legal framework to help viable companies stay in business as we emerge from the pandemic.
“The Bill provides for a streamlined, workable and practical process to allow these companies restructure and continue to trade.
“It is built on a tried and tested framework, examinership, and with the benefit of input from business, trade unions, insolvency practitioners and legal practitioners.
“The Bill also provides for amendments arising from the Company Law Review Group’s first phase of work in the area of employees’ rights as creditors under the Companies Act, in line with the recently published Plan of Action on Collective Redundancies following Insolvency.”
