Earlier this year, the Department of Enterprise, Trade and Employment announced the extension of the temporary provisions of the Companies (Miscellaneous Provisions) (Covid-19) Act 2020 (the “Act”) until 31 December 2022.
The interim period of the Act was set to expire on 30 April 2022. This is a welcome development as Irish businesses continue to recover from the challenging trading circumstances of the pandemic. But what will it mean for businesses?
The Act was introduced in 2020 and made temporary amendments to the Companies Act 2014 and the Industrial and Provident Societies Act 1893, including the following:
- Annual General Meetings and other general meetings may be conducted wholly or partly by electronic means
- The period of examinership is extended to a total of 150 days, subject to court approval.
- The debt threshold for the commencement of the winding-up of a company is increased to €50,000.00.
- Documents required to be executed under seal may be executed in counterpart.
The Minister for Trade Promotion, Company Regulation and Digital, Robert Troy has indicated that this is likely to be the final extension of the Act, however work is continuing to put virtual AGMs and general meetings meetings on a permanent statutory footing. Nonetheless, the continuation of the various amendments will provide breathing space and certainty to struggling Irish businesses.
About the Author: Katie Oakes is a solicitor on the Corporate Team.
Read more on the Act:
Extension of the Companies (Miscellaneous Provisions) (Covid-19) Act 2020 to the end of 2021
The Companies (Miscellaneous Provisions) (Covid-19) Act 2020: Insolvency and cashflow-related provisions