The Company Law Review Group (CLRG) was asked to examine and recommend ways in which company law could be amended to ensure better safeguards for a company’s employees and unsecured creditors. In response to this request, a root and branch review was carried out of all relevant provisions of the Companies Act 2014 and, in particular, whether new provisions should be proposed. The CLRG Report on the Protections of Employees and Unsecured Creditors was published on 13 July 2017. Proposals for legislative change are suggested in the Report which, while not representing a panacea, could potentially address some of the difficulties experienced by employees and unsecured creditors in situations of company insolvency, while improving transparency and accountability.
The recommendation in the Report relating to the proposed Self-Administered Liquidation has been referred for further consideration and elaboration to a subcommittee of the CLRG on Corporate Insolvency, which is currently reviewing the provisions in relation to winding up in the Companies Act 2014 as part of the CLRG Work Programme for 2016-2018. The remaining recommendations are also under consideration by officials in my Department. It is intended that any proposals for legislative change arising from these recommendations will be forthcoming as soon as is practicable. Finally, I understand that the Department of Employment Affairs and Social Protection has convened an interdepartmental working party to examine how employees’ access to the Social Insurance Fund could be improved in circumstances where their employer has not entered formal insolvency. The work of this group is progressing.
