Ms Fiona O'Dea:

This section is modelled on a New Zealand provision. When it was introduced under the Companies Act 2014, it was a less liberal provision than the New Zealand model it is based on. These amendments will make it a less restrictive provision. It will align more with the New Zealand provision. This is something ICTU sought. It will be no longer mandatory for the court to be satisfied that circumstances of the winding up were attributable to the company’s action. It can have regard to the extent of the circumstances that gave rise to the liquidation and how it was attributable to the actions of the related company. In addition, it can have greater discretion to have regard to any other factor. An important feature of this provision is the extent to which the court can have regard to factors. What is an important bar in respect of this provision is that it is not just a related company but that it is a related company with regard to what extent it was involved in the management of the company, how much its behaviour contributed to the insolvency of that company, and the impact it would have in relation to their own company. Regarding scope and what a related company is, I imagine a group of companies is recognised and established, and the court would have to have regard to extent of those relationships and how they impact on the insolvency of the company.