ODCE Offers Comfort to Firms Facing Insolvency Amid Covid-19

The State’s corporate watchdog has moved to ease concerns of directors of businesses seeking to trade through financial problems caused by the coronavirus economic shock, but where the company ultimately goes under, The Irish Times reported. When liquidators are appointed to insolvent companies, they must issue a report to the Office of the Director of Corporate Enforcement (ODCE) and initiate court proceedings seeking to have directors restricted, unless they are granted a waiver by the watchdog from doing so. However, the ODCE has issued guidance this month indicating that if a company becomes insolvent because of events outside of directors’ control – and they are seen to have acted honestly and responsibly – the agency would not generally take the view that the directors behaved improperly. Read more