Catherine Murphy (Kildare North, Independent)
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78. To ask the Minister for Jobs, Enterprise and Innovation in relation to lands and property assets held by development companies for liquidation, and where developments are not completed to the planning permission, if the assets transfer to protected creditors, a Government Department, the State Solicitor or any other agency; if any proceeds are made available to complete public services in incomplete housing developments, debts to the Revenue Commissioners, lenders or other creditors in such cases; and if he will make a statement on the matter. [18124/14]

Richard Bruton (Dublin North Central, Fine Gael)
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The Companies Acts set out the provisions applicable to the winding up and liquidation of companies established under those Acts. The Acts do not prescribe any special rules for the liquidation of property development companies.

It is the duty of a liquidator to take possession of corporate assets and to protect those assets, and also to realise or liquidate the assets so as to enable the proceeds to be distributed in accordance with law. If the assets are not sufficient to pay all the creditors, the general rule is that, subject to the provisions applicable to preferential creditors, the creditors of an insolvent company are to be paid pari passufrom the assets i.e. in proportion to their debts. Section 285 of the Companies Act 1963 sets out the preferential creditors who must be paid in priority to other creditors. These would include the Revenue Commissioners and certain employee entitlements.

In the liquidation of an insolvent company a secured creditor who holds a fixed charge is entitled to realise or otherwise deal with his or her security outside the winding up. If there is a surplus after his or her debt has been paid from the realisation of the security, he or she must contribute such surplus to the liquidator.

My Department has no role in relation to the completion of public services in unfinished housing developments.