Dáil Éireann Debate, Tuesday - 25 September 2012
182. Deputy Jonathan O'Brien asked the Minister for Jobs; Enterprise and Innovation his plans to review company law in order to oblige insolvent companies which declare themselves unable to meet their financial obligations to their employees to enter liquidation before employees are forced to apply to the redundancy fund; and if he will make a statement on the matter. [40400/12]
View answerIf an insolvent company is not put into liquidation and is struck off the Register of Companies for failure to file annual returns, it is open to the Director of Corporate Enforcement, pursuant to section 160(2)(h) of the Companies Act 1990 (as amended) to apply to the High Court for the disqualification of the directors of the company.
The Companies Acts, along with other legislation such as the Social Welfare Acts, grant preferential status to a number of creditors in the winding up of a company. Section 285 of the Companies Act, 1963 sets out a number of preferred debts in relation to the assets of a company in a winding up. These include unpaid wages and salaries of employees due during the four months prior to liquidation and up to a maximum of €3174.35 per employee. Provision is also included in Section 285 for the preferential status of employees’ accrued holiday remuneration, sums due in respect of sick pay and pension contributions. I have no plans to review Company Law in this regard.
