Priority legislation aimed at mitigating the impact of the Covid-19 crisis on Irish companies has just been published in draft form. The government approved the Companies and Industrial and Provident Societies (Covid-19) (Amendment) Bill 2020 this week with a view to early enactment of the legislation.

The new laws will for an "interim period" (ending on 31 December 2020, unless extended):

  • Enable documents under company seal to be executed in different counterparts.
     
  • Give extra time for companies to hold AGMs, explicitly enable them to hold general meetings by electronic means, and permit directors to withdraw a dividend resolution or to reduce the dividend proposed to be declared by resolution at a general meeting.
     
  • Increase the debt threshold for the commencement of a winding up by the court from an individual debt of €10,000, or aggregate debts of €20,000, to €50,000.
     
  • Facilitate the virtual holding of creditors' meetings in voluntary and other liquidations, examinerships, statutory schemes of arrangement under Part 9 of the Companies Act 2014 and other insolvency processes.
     
  • Enable the examiner of companies that go into examinership to have a longer period in which to make a report to the court. The maximum period of examinership may, in exceptional circumstances, extend from 100 to 150 days.
     
  • Expressly provide that directors of insolvent companies must have regard to the interests of creditors of the company and preserve the company's assets.

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