Tommy Broughan (Dublin North East, Independent)
Link to this: Individually | In context | Oireachtas source

457. To ask the Minister for Jobs, Enterprise and Innovation when he will introduce legislation to revamp company law to prevent the type of closure which took place at a department store (details supplied) in Dublin, with such detrimental impacts on workers and small business concession owners; and if he will make a statement on the matter. [31639/15]

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The operation of the Companies Act 2014 is under continuous review, particularly through the work of the Company Law Review Group (CLRG). The current work programme of the CLRG specifically includes topics on receivership, examinership and winding up. With regard to the situation referred to by the Deputy, the liquidation of OCS Operations Limited is currently in the hands of liquidators under the supervision of the High Court. While the liquidation is at an early stage, the High Court was informed at the hearing on 6 July that the liquidators have identified a number of matters which they intend to investigate as part of the liquidation process. It is only when all the facts and events leading up to the winding up of the company are known, and any potential legal challenges are raised, that an informed decision can be made on whether an amendment to Company Law should be made.

The liquidators have important duties under Company Law. They include an obligation to provide within 6 months of their appointment a report on the conduct of directors to the Director of Corporate Enforcement; a requirement to make an application to the High Court for the restriction of directors unless the Director of Corporate Enforcement has relieved the liquidator of this requirement.

The Companies Act 2014 introduced stronger provisions under which a related company may be required to contribute to the debts of a company being wound up (section 599) and the pooling of assets of related companies (section 600). The effectiveness of these provisions remain to be tested and it would be inappropriate to comment on their application in any case before the courts.