Dáil Éireann Debate, Tuesday - 17 May 2016
145. Deputy Mattie McGrath asked the Tánaiste and Minister for Justice and Equality if she will address the urgent need to introduce stricter regulations around the practice of receivership and associated State offices such as county registrars and sheriffs. [10617/16]
View answerThe Companies Act 2014, which is the responsibility of my colleague the Minister for Jobs, Enterprise and Innovation, entered into force on 1 June 2015 and has updated and codified company law in this jurisdiction; it continues to provide a range of possible remedies for debenture holders and lending institutions in the event of a borrower encountering financial difficulties. These include the appointment of a receiver, an examinership process, and liquidation in those cases in which the company is beyond rescue. The Act includes detailed provisions which regulate the appointment and the powers of receivers, examiners and liquidators respectively. However, the 2014 Act does not specify any regulatory standards for the appointment of a receiver.
The Company Law Review Group is a statutory body which advises the Minister for Jobs, Enterprise and Innovation on the review and development of company law in this jurisdiction. As part of its Work Programme 2014 – 2016, the Review Group is examining whether it is desirable or necessary to further amend company law arising from case law developments and any submissions received on matters which have not been addressed in the 2014 Act.
In regard to the appointment of a receiver, the position is that such an appointment may be made under company law or land and conveyancing law (the Land and Conveyancing Law Reform Act 2009 for mortgages created after 1 December 2009 and the Conveyancing Act 1881 for mortgages created prior to that date). Courts may also exercise discretionary powers to appoint a receiver on application from a secured creditor. Apart from these sources, the instrument creating the charge may also contain broader contractual terms in relation to appointment of a receiver and additional powers which he or she may exercise on appointment. The Sheriff (or County Registrar acting as Sheriff) is responsible to the Court for the Enforcement of the Court Orders and the law and procedures governing the execution of Court Orders is contained in the Enforcement of Court Orders Acts, 1926 to 1940 and the Rules of Court made thereunder, and I wish to inform the Deputy that I have no operational function in this matter.
