Richard Bruton (Dublin North Central, Fine Gael) | Oireachtas source

I agree with my colleague, Deputy Nash, that this has been an appalling case. It certainly has raised issues that deserve attention.

In the context of company law, the liquidation of OCS Operations Limited is currently in the hands of liquidators under the supervision of the High Court. While the liquidation is at an early stage, I understand the High Court was informed at the hearing on 6 July that the liquidators have identified a number of matters which they intend to investigate as part of the liquidation process. It is only when all the facts and events leading up to the winding up of the company are known and any potential legal challenges are raised that an informed decision can be made on whether an amendment to company law should be made.

The liquidators have important duties under company law. They include an obligation to provide, within six months of their appointment, to the Director of Corporate Enforcement a report on the conduct of directors and a requirement to make an application to the High Court for the restriction of directors unless the Director of Corporate Enforcement has relieved the liquidator of this requirement. The 2014 Companies Act introduced stronger provisions under which a related company may be required to contribute to debts of a company being wound up, under section 599, and the pooling of assets of related companies, under section 600. The effectiveness of these provisions remain to be tested and it would be inappropriate to comment on their application in any case before the courts.

The operation of the Companies Acts are under continual review, particularly through the work of the Company Law Review Group. Its current work programme includes receivers, examinership and winding up. I will closely monitor the developments in this case and evaluate their impact on the adequacy of company law.

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