Written answers

Tuesday, 14 July 2020

Department of Employment Affairs and Social Protection

Company Liquidations

Photo of Bríd SmithBríd Smith (Dublin South Central, People Before Profit Alliance)
Link to this: Individually | In context | Oireachtas source

707. To ask the Minister for Employment Affairs and Social Protection if she will meet workers of a company (details supplied); the steps she will take to ensure that stock or assets are not removed from the company's stores before the outcome of negotiations with workers' representatives on redundancy terms and possible future scenarios; and if she will make a statement on the matter. [14770/20]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I note that Debenhams is a court-supervised liquidation, subject to the oversight of the High Court, and accordingly is sub judice. While company law matters are the responsibility of the Minister for Enterprise, Trade and Employment, there is in fact no ministerial power to intervene in a court-supervised liquidation.

In general terms, the Companies Act 2014 already includes provisions which may be utilised by liquidators or creditors of an insolvent company in appropriate cases. These include section 608, regarding the power of a court to order the return of assets which have been improperly transferred, and section 599 where a related company may be required to contribute to debts of company being wound up. A range of factors will be involved for liquidators or creditors in deciding whether to pursue litigation based on these provisions of the Companies Act 2014. Such statutory provisions and the associated civil and criminal penalties also provide an important deterrent effect.

Alongside Company Law, companies must also of course comply with other legal requirements including their obligations in respect of the treatment of their employees, creditors and disclosure to and compliance with Revenue requirements.

I trust this clarifies matters for the Deputy.

Comments

No comments

Log in or join to post a public comment.