Simon Harris (Wicklow, Fine Gael) | Oireachtas source

I move amendment No. 10:

In page 54, to delete lines 36 to 40, and in page 55, to delete lines 1 and 2 and substitute the following:“Restrictions on directors of insolvent ICAVs

82. (1) The provisions of Chapter 3 of Part 14 of the Companies Act 2014, and the other provisions of that Act relating to restrictions on directors of an insolvent company (within the meaning of section 818), have effect in accordance with subsection (2).

(2) Those provisions have effect as if—

(a) the following references:

(i) the reference to a company referred to in section 819(6) in the definition of “company” in section 818(1);

(ii) the references to a company in section 818(3);

(iii) the final 3 references to a company in section 819(1);

(iv) the references to an investment company in section 819(5);

(v) the references to a company in sections 821(1)(a) and (b), 825(1) and (2) and 836;

(vi) the references to a company in the definition of “restriction” in section 849;

(vii) the references to a company in sections 853(5), 855(1), 858 and 859, included an ICAV, and

(b) the reference in section 828(2) to the constitution of a company included the instrument of incorporation of an ICAV.

(3) The provisions of the Companies Act 2014 mentioned in subsection (1) apply, subject to necessary modifications and to the specific modifications specified in subsection (4), in relation to directors of an insolvent ICAV as if they were directors of an insolvent investment company.

(4) The modifications are that—

(a) references to a company in the definitions of “director of an insolvent company”and “insolvent company” in subsection (1) of section 818 and subsection (2) of that section are to an ICAV,

(b) references to the Registrar are to the Bank,

(c) the reference to prescribed particulars in sections 819(7) and 823(2), and to the prescribed form and manner in section 819(7), are to particulars, and to the form and manner, specified by the Bank, and

(d) the reference in section 823(5) to section 894 is to section 14 of this Act.”.

This deletes the previous section 82 and inserts a new section to cross-apply to ICAVs the provisions of the Companies Act 2014 relating to the restrictions on directors of insolvent companies which are found in chapter 3, part 14 of the Companies Act 2014. Pursuant to the Companies Act 2014, the court may make a declaration restricting a director upon application from the Director of Corporate Enforcement, the liquidator of the insolvent company or a receiver of any property of the company. The restriction is for a period of five years and the restricted person may not be appointed to act in any way, directly or indirectly, as a director or secretary, or to be involved in the formation or promotion of a company unless that company meets certain capitalisation requirements. This provision will, in effect, restrict directors of insolvent companies from involvement with a company or an ICAV and restrict directors of insolvent ICAVs from involvement with a company or ICAV. Restricting future directorships of dishonest or irresponsible directors of insolvent ICAVs or companies is an effective way of punishing such behaviour and protecting the public and investors from any future wrong-doing.

Amendment No. 11 introduces a new section 83. This cross-applies to ICAVs the provisions of the Companies Act 2014, relating to the disqualifications on directors of insolvent companies which are found at sections 837 to 848 of the Companies Act 2014.

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