Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

This amendment arises from a query by Senator Barrett on Second Stage regarding the appropriateness of including as a grounds for disqualifying a director of Shannon Group the making of composition arrangements with creditors. Having reviewed the text and consulted with the Office of the Director of Corporate Enforcement, I am proposing that this provision be removed from the list of grounds for disqualifying directors in subsection 16(9). The term is considered to be obsolete and is being dispensed with in company law generally. I am also taking the opportunity to update subsection 16(9)(a), which deals with bankruptcy as grounds for disqualification. The amendment mirrors what is contained in the Companies Bill 2012, which was passed recently by the Dáil, and makes clear that disqualification will only apply for the duration of the bankruptcy process and cease to apply once the bankruptcy is discharged.