Background
The Corporate Enforcement Authority (“CEA”) has issued its first information note of 2023 on the topic of the European Union (Preventative Restructuring) Regulations 2022 (the “Regulations”) which came into effect on 27 July 2022 (the “Information Note”).
Introduction
Section 819 of the Companies Act 2014 operates to restrict directors of insolvent companies from being appointed or acting as a director or secretary of a company and from being concerned in or taking part in the formation or promotion of a company. Any director who falls foul of s.819 is subject to a mandatory period of restriction of 5 years. The primary purpose of s. 819 is to protect the public from persons who, by their conduct, have proven themselves unfit to hold the office and discharge the duties of a director.
Solvency II was the most significant reform that the insurance sector has experienced in many years and while one of the benefits of Solvency II has been the strengthening and increased resilience of insurers, Solvency II was never intended as a zero-failure regime.
This year marks the 30th anniversary of the introduction of the examinership framework in Ireland and given the current challenges facing businesses, 2020 could be the year that the process comes into its own to assist struggling but otherwise viable companies and, very importantly, to maintain employment.
Brexit, inconclusive election results and an unprecedented partial lockdown in an effort to combat against the spread of COVID-19 has created enormous challenges for certain companies who had been thriving in an erstwhile rapidly improving economy.
The European Account Preservation Order Regulation 655/14 came into effect yesterday, 18 January 2017 throughout Europe except in the UK and Denmark - who have not adopted the regulation. The Regulation establishes a procedure which enables creditors from a participating member state to seek an Order preventing a debtor from dissipating assets until such time as the creditor’s proceedings for Judgement are determined and enforced.
Following on from her decision of late last year in Re Darren Reilly & the Personal Insolvency Acts 2012 to 2015 [2017] IEHC 558 (further details of which can be found here), Ms.
Litigation & Dispute Resolution
In line with a recent decision of Judge Susan Ryan in the Dublin Circuit Court (further details of which can be found here), the High Court has held that only a Personal Insolvency Practitioner (“PIP”) has standing to apply to the Circuit Court for a review of a creditor’s rejection of a Personal Insolvency Arrangement (“PIA”).
Litigation & Dispute Resolution
A recent decision of Judge Susan Ryan in the Dublin Circuit Court is likely to have a substantial impact on debtors seeking to enter into a Personal Insolvency Arrangement (‘PIA’) with their creditors.
A recent Court of Appeal decision has found that the State has failed to adequately implement EU Legislation by failing to provide a procedure to protect employees’ entitlements in the event of an informal insolvency of their employer.
Introduction