Robert Troy (Longford-Westmeath, Fianna Fail) | Oireachtas source

Section 558N of the Bill is based on the existing section 520 of the Companies Act, which gives the court full flexibility to put a stay on proceedings if it sees fit. Section 20 provides that no proceedings in relation to a company may commence except by leave of the court and that the court may stay existing proceedings. Employees will not find themselves unfairly prejudiced by this provision or unable to assert their legal rights.

First, where it is proposed to stay proceedings, all interested parties will be put on notice and provided with an opportunity to be heard by the court. The court will not make an order until all those who have indicated they wish to be heard have been heard. The court will only make an order under the section where it considers it to be necessary for the survival of the company as a going concern. It is not typical for precedents in relation to employees' statutory rights to be stayed in examinership.

Second, even if the court did determine that it was appropriate to stay proceedings of this nature, an employee would not find him or herself unfairly prejudiced or unable to assert his or her legal rights as a result. The stay simply pauses proceedings. It does not stop them from being taken and, therefore, we do not propose to accept this amendment.

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