Wednesday, 24 February 2021

Questions (34)

John McGuinness

Question:

34. Deputy John McGuinness asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will review the powers of receivers outlined in the Companies Act 2014 with a view to ensuring that they act responsibly and in the best interest of the objectives for which they were appointed; if he will legislate to independently regulate receivers; the number of complaints made against receivers; the actions taken to address the complaints; and if he will make a statement on the matter. [10172/21]

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Written answers (Question to Enterprise)

Receivers are currently appointed either by:

- Order of the court;

- Under a relevant security e.g. a mortgage or a charge which contains the contractual terms in relation to their appointment and their powers under the instrument; or

- Statute under the Land and Conveyancing Law Reform Act 2009 and the Conveyancing Act 1881.

The Companies Act 2014 has application only to receivers who are appointed to preserve, manage or sell the property of a company. The provisions of Part 8 amongst other things, disqualify certain persons from being appointed as a receiver, require that the Registrar of Companies be notified where a receiver is appointed, and set out the powers a receiver has following appointment.

In December 2018, the then Minister for Business, Enterprise and Innovation requested the Company Law Review Group (CLRG), a statutory advisory body, to examine and recommend ways in which company law could be potentially amended to ensure the better governance of receivers appointed to the property of a company.

In May 2019, the CLRG submitted its report on the regulation of receivers; this report is available publicly on the CLRG website. The Programme for Government includes a commitment to review the regulation of receivers. The CLRG's recommendations around supervision, costs, qualifications and the provision of information will be considered by my officials with a view to progressing any necessary legislation as soon as is practicable.