In its decision in In re Davis Joinery Ltd [2013] IEHC 353, the High Court identified the difficulties that employees of corporate employers may face when their employer ceases trading without taking any steps to formally wind-up the company.

The manner in which creditors’ meetings are conducted can often be as significant as the actual outcome of the meeting.  A good example of this can be seen from the recent High Court decision in In re Mountview Foods Ltd (In Voluntary Liquidation) [2013] IEHC 125.

Section 222 of the Companies Acts 1963 provides that leave of the High Court must be obtained in order to bring or prosecute proceedings against a company which is the subject of a winding-up order.  In In re MJBCH Ltd: Mary Murphy [2013] IEHC 256, the High Court confirmed it has jurisdiction to grant leave retrospectively under this section.

The Personal Insolvency Act 2012 was signed into law on 26 December 2012.  As of 31 July 2013, all sections of the Act (save for Part 4 which relates to bankruptcy) had been commenced by ministerial order. 

In our Spring Insolvency Update, we provided an overview of the main provisions of the Personal Insolvency Act 2012.  Here we provide an update on some recent developments relating to the legislation.

An order providing for the commencement of certain provisions of the Personal Insolvency Act 2012 brings the following three new debt settlement arrangements into operation with effect from 31 July 2013:

The High Court has made an order disqualifying the two directors of Mossway Limited (In Liquidation) for a period of 12 months.

Background

The principal business of the company had been the provision of haulage services with a warehousing and distribution facility. On 3 June 2011, the Revenue Commissioners presented a petition to wind up the company on the basis that it was unable to pay its debts as they fell due. The Court made the order sought and appointed an Official Liquidator.

The Courts and Civil Law (Miscellaneous Provisions) Act 2013 was signed into law by the President on 24 July 2013.  While certain sections of the Act commenced immediately on its signing into law, other provisions have yet to be commenced by ministerial order.

A summary of the key changes brought about by the Act are set out below.

Increase in the Monetary Jurisdiction of District and Circuit Courts

The Act increases the monetary jurisdiction of:

The Personal Insolvency Act 2012 was signed into law on 26 December 2012. The Act provides for the introduction of three new non-judicial debt settlement arrangements and reforms to the current bankruptcy legislation.

The Minister for Justice and Equality has made an order providing for the commencement of certain provisions of the Personal Insolvency Act 2012 with effect from Friday 1 March 2013.

The provisions to be commenced with effect from this date are as follows:

The Personal Insolvency Bill was signed into law by the President on 26 December 2012.

The Act provides for: