Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

The best thing I can do is read the speaking note on the section. With effect from the making of the special liquidation order there shall, subject to some exceptions, be an immediate stay on all proceedings against IBRC. No further actions or proceedings can be issued against IBRC without the consent of the High Court and the Minister may discharge or remove any liquidator or examiner that has been appointed to IBRC prior to the date of the special liquidation order.

This section also provides that the special liquidation order shall constitute effective and proper notice to each employee of IBRC that his or her employment with IBRC is terminated with immediate effect. However, the special liquidator is not prevented from engaging or re-engaging any person as an employee if the special liquidator considers such employment to be necessary or beneficial for the purposes of winding up IBRC.

The effects of the special liquidation order set out in this section are consistent with the effect of an order to wind up a company in the ordinary way under the Companies Act. It should be noted that since the State is the owner of IBRC it will be open to the State to wind up IBRC without legislation. The legislation provides a framework to achieve this in a controlled manner in order to enhance financial stability.

On the separation of powers, the Senator will note from the first couple of sentences in the briefing note that proceedings can be issued by the IBRC with the consent of the High Court and the Minister. The fact that the High Court is included in the section seems to me to preserve the separation of powers in that respect.