Written answers

Tuesday, 26 January 2010

Department of Enterprise, Trade and Employment

Company Law

8:00 pm

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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Question 213: To ask the Tánaiste and Minister for Enterprise, Trade and Employment her views on the requirement that limited liability companies engage legal representation for all court-based proceedings; and if she will make a statement on the matter. [3318/10]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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A consequence of the corporate right to sue and be sued is that a company cannot appear in court except through its solicitor or counsel, (unless of course, it is being sued on indictment when it may appear in court by a representative appointed by the company). In Battle v Irish Art Promotion Centre Ltd [1968] IR252, the Supreme Court refused such an application on the basis that the company was a different person, separate and distinct from its controlling shareholder. Given that the Supreme Court decision in the Battle's case is settled law here for some time, I am reluctant to undertake any review of the matter in the absence of some compelling grounds or demonstrated need for doing so.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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Question 214: To ask the Tánaiste and Minister for Enterprise, Trade and Employment her plans to amend company law to provide for an alternative to court-sponsored liquidation and strike-off; and if she will make a statement on the matter. [3319/10]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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The Company Law Review Group [CLRG] made recommendations which have been accepted by Government, to reform the substantive and procedural requirements of the winding-up regime including liquidations. The recommendations were published as Part A11 of the General Scheme of the Companies Consolidation and Reform Bill which is currently being drafted by the Office of the Parliamentary Counsel.

With the exception of non court procedures such as (i) members voluntary winding-up; (ii) creditors voluntary winding-up; and, (iii) dissolution after a fixed period of time, the role of the court in liquidations is to ensure fairness to the companies members and creditors and it is not clear how an alternative could perform this role with the same legal certainty which attaches to the decisions of a court.

Part A12 of the General Scheme provides for Strike-Off and Restoration by a court and by administrative procedure; however only a court may permit the restoration of a company to the register following liquidation.

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