Dáil Éireann Debate, Tuesday - 26 April 2016
138. Deputy David Cullinane asked the Minister for Jobs, Enterprise and Innovation the steps he is taking to prevent companies engaging in tactical insolvencies; and if he will make a statement on the matter. [8379/16]
View answerIn January 2016, Minister Ged Nash and I announced a twin track examination of protections in law for employees and unsecured creditors, particularly to ensure limited liability or restructuring are not used to avoid a company’s obligations to its employees and unsecured creditors. We appointed two experts to examine the legal protections for workers, particularly where operations and assets may be moved to separate legal entities as part of a restructuring. The examination specifically looked at situations where valuable assets in a company are separated from the operating entity, and how the position of employees can be better protected in such situations. The experts have submitted their report and I intend to submit it to Government shortly with a view to its publication. Publication of the report will allow interested parties to consider the detailed proposals therein. Their feedback will help inform a response to the report.
As part of the twin track approach, I also requested that the Company Law Review Group examine legislation with a view to recommending ways company law could be amended to better safeguard employees and creditors. That work has commenced and any recommendation made by the Group will be given full consideration, when received.
