Company Law

Dáil Éireann Debate, Thursday - 16 July 2015

Thursday, 16 July 2015

Questions (272)

Peadar Tóibín

Question:

272. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation his views that the decision of the new owners of Clerys (details supplied) to transfer ownership of an insolvent company (details supplied) to two directors who also happen to be insolvency experts exhibits the kind of sharp practice that the existing Companies Act legislation is not sufficiently robust to act as a deterrent against; and if he will make a statement on the matter. [29692/15]

Written answers

Minister for Jobs, Enterprise and Innovation

The liquidation of OCS Operations Limited is currently in the hands of liquidators under the supervision of the High Court. While the liquidation is at an early stage, I understand that the High Court was informed at the hearing on 6 July that the liquidators have identified a number of matters which they intend to investigate as part of the liquidation process. It is only when all the facts and events leading up to the winding up of the company are known – and any potential legal challenges raised - that an informed decision can be made on whether an amendment to Company Law should be made.

As the Deputy knows the liquidators have important duties under Company law. They include:

- an obligation to provide within 6 months of their appointment a report on the conduct of Directors to the Director of Corporate Enforcement;

- a requirement to make an application to the High Court for the restriction of Directors unless the Director of Corporate Enforcement has relieved the liquidator of this requirement.