I move amendment No. 231:
In page 132, paragraph (e), line 1, after "liabilities", to insert "(including contingent and prospective liabilities)".
SECTION 171.
Amendment agreed to.
Section 171, as amended, agreed to.
SECTION 172.
I move amendment No. 232:
In page 132, lines 26 to 28, to delete subsection (4), and substitute the following:
"(4) Where the examiner is not a party to an application to the court for the purposes of subsection (1), the company shall serve notice of such application on the examiner and the examiner may appear and be heard on the hearing of any such application.".
This is another drafting amendment. It is inserted both to make the meaning of this provision clearer and to help it to work more smoothly in practice. Section 172 of the Bill is basically a condensed version of section 290 of the 1963 Act which allows the liquidator to disclaim onerous contracts in the case of a company being wound up. Section 172 of the Bill allows a company for which proposals for a compromise or scheme of arrangements have been prepared but subject to court approval to either formally accept or reject certain uncompleted contracts to which it is party.
The section was strengthened on Committee Stage in the Seanad by the addition of subsection (5) which allows the court to make a range of orders to give effect to its decisions. In any case where the company is seeking refuge in this particular section, subsection (4) currently requires the company to serve notice on the examiner of the application to the court and the examiner would then be entitled to appear and be heard on the application.
Of course, I imagine that in most cases the examiner would not only be aware of the company's proposal, he could actually be the instigator of it. Amendment No. 232 has been prepared to take account of this and to provide that the company would only have to notify the examiner under the section where the examiner was not actually a party to the application already.
Amendment agreed to.
Section 172, as amended, agreed to.
Section 173 agreed to.