SFA submitted a response to the Department of Enterprise, Trade and Employment consultation on a potential new restructuring process suitable for the rescue of small companies.
It is envisaged that new legislation, if enacted, will set out a stand-alone restructuring process separate from examinership. This new process will be tailored specifically for the 98% of Irish companies that are micro and small companies as defined in the Companies Act 2014. This includes all companies that, in the most recent financial year, fulfil two or more of the following requirements:
- The turnover of the company does not exceed €12 million
- The balance sheet total of the company does not exceed €6 million
- The average number of employees does not exceed 50
The consultation process follows the publication of a report by the Company Law Reform Group.
The submission was written by SFA member Declan de Lacy, an insolvency expert from PKF O’Connor, Leddy & Holmes, following consultation with members, and answers questions set out in the consultation focusing on:
- Key elements of the process
- Disqualification from entry
- Standard forms
- Potential users.
If implemented and utilised correctly, the Summary Rescue Process, has the potential to have a positive impact on the small business community and become an important insolvency tool.
Access the full submission here.
Read a recent Sunday Independent Article ‘Low cost examinership ‘must allow lease exits’ says SFA’ on our submission.