Dáil debates

Wednesday, 15 June 2016

Priority Questions

Company Closures

2:35 pm

Photo of Pat BreenPat Breen (Clare, Fine Gael) | Oireachtas source

I thank Ms Nessa Cahill, a company law specialist, and Mr. Kevin Duffy, the chairman of the Labour Court, for the work they have done. They are very distinguished, professional people. As the Deputy knows, the idea behind the report was to focus on limited liability in corporate restructuring and the view that it would not be used by a company to avoid meeting its obligations towards employees.

The Protection of Employment Act 1977 imposes a number of obligations on employers who are contemplating collective redundancies, including the obligations to consult employees and to provide certain information to employees for the purpose of the consultation. As I said, authorised officers sought information from a number of parties, but since the matter is sub judice, it would not be appropriate for me to comment any further on it.

With regard to the company law aspect, about which the Deputy spoke, the report does not propose that any amendments be made to the existing provisions of the Companies Act 2014. However, it does state in clear terms that the existing company law provisions provide substantial weaponry that could be used against directors and related companies to redress the effects of and deter harmful transactions.

These provisions are only of weight if the persons are employed and seen to be employed. The report makes proposals designed to facilitate and support the use of these proposals in future cases.


No comments

Log in or join to post a public comment.