I propose to take Questions Nos. 152 and 154 together.
The liquidation referred to by the Deputy is proceeding under the supervision of the High Court in accordance with the Companies Act 2014 and the Government cannot interfere with that process. It is a matter for the Courts to decide on the relevance and import of any information that comes to light during a court supervised liquidation process.
The procedures for liquidation are set out in the Part 11 of the Companies Act 2014. In general terms, a company is permitted to initiate a winding-up where it has complied with the requirements of the Companies Act 2014. A company both during normal operation and in a winding-up process must of course also abide by all relevant legal requirements, including the treatment of employees and creditors. However, the provisions of the Companies Act 2014 provide safeguards to prevent the abuse of the liquidation system. These include preferential payments under section 621 which provide for categories of employee entitlement such as wages owed, holiday remuneration, superannuation benefits, ill health payments and social welfare contributions. The Companies Act 2014 also has a significant number of provisions that address transactions that seek to deprive creditors of the assets in the period leading up to insolvency
Irish company law provides that, where a company enters insolvent liquidation, the liquidator, in addition to his/her statutory functions and duties, has certain reporting obligations to the Corporate Enforcement Authority (CEA). All liquidators' reports received are carefully examined by reference to the facts and circumstances of each case. In particular, each case is examined with a view to establishing whether there have been breaches of company directors' duties or other breaches of company law. The CEA operates under a statutory duty of confidentiality and, as such, does not comment on individual matters. However, all representations received are carefully considered. The matters raised by the Deputy were brought to the CEA’s attention by the Department as is appropriate. The CEA does not report to Government on its investigations.
Government recognised the exceptional circumstances of the case, which arose during the height of Covid-19, and took a number of unique actions on foot of the closure.
1. Improvements were made to the quality and circulation of information to workers as creditors through the Companies (Rescue Process for Small and Micro Companies) Act 2021. In addition, a statutory obligation was also imposed on directors to consider the interests of creditors in the period leading up to insolvency through the European Communities (Preventive Restructuring) Regulations 2022.
2. Furthermore, following extensive engagement with the social partners, the ‘Plan of Action on Collective Redundancies following Insolvency’ was published in June 2021. Implementation of the Plan of Action will enhance the protection of employees in a collective redundancy.
It is the intention of the Minister for Enterprise, Trade and Employment to bring forward very shortly legislative proposals which will change company law and employment rights law in line with the Plan of Action. The Plan sets out a range of commitments to enhance further the protection afforded to employees who find themselves in a collective redundancy situation following insolvency. It includes a suite of measures including amendments to employment law and company law legislation and the setting up of an Employment Law Review Group.
