Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael) | Oireachtas source

I am not in favour of accepting amendment No. 3. The contribution order remedy is a unique feature of New Zealand and Irish company law. The Irish provision in section 599 echoes the judgment of Mr. Justice Costello in Power Supermarkets Limited v.Crumlin Investments Limited. It is a mechanism that deals with related companies in insolvency and the possibility of unfair behaviour in the group. Accordingly, section 599 gives discretion to a court to hold a related company liable for the debts of a company being wound up provided that the court is satisfied that circumstances giving rise to the liquidation are attributable to the actions or omissions of the related company. I note that Ireland does not yet have an authoritative judgment on the circumstances in which a contribution order will be made between related companies.

The Company Law Review Group, CLRG, was requested after the Clerys insolvency to review and recommend ways that existing company law and, indeed, other legislative provisions could be potentially amended to ensure better safeguards for employees and unsecured creditors. I understand that a subgroup of the CLRG has met a number of times to consider a wide range of provisions and remedies contained within the Companies Act. I understand that this review includes the existing section 599 and other related provisions. I look forward to receiving the CLRG's recommendations later this year and I shall give them careful considerations. It is in these circumstances that I am not in favour of the amendment.