Matt Carthy (Cavan-Monaghan, Sinn Fein)
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151. To ask the Minister for Enterprise, Trade and Employment the role his Department has in the regulation of commercial receivers; the mechanism by which a citizen or business can challenge decisions made by a bank or court appointed receiver; and if he will make a statement on the matter. [37010/21]

Robert Troy (Longford-Westmeath, Fianna Fail)
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Receivership arises from a private contractual relationship between a lender and a creditor. A receiver is appointed on behalf of a secured creditor to sell the particular company asset which has been charged in favour of that creditor. A receiver is appointed under a) the terms of the debenture for stated reasons or b) by court order.

The Companies Act 2014 has application only to receivers who are appointed to preserve, manage or sell the property of a company. The provisions of Part 8 amongst other things, disqualify certain persons from being appointed as receiver, set out their statutory powers and duties following appointment, require that certain information be submitted to the Registrar of Companies and the Office of the Director of Corporate Enforcement, and provide for the regulation and enforcement of their duties.

Under the Act the receiver must achieve the best price reasonably obtainable at the time of sale. This makes it imperative that they obtain expert legal and valuation advice in relation to the sale of property. The Act also provides that an application may be made to court for directions concerning the performance by the receiver of their functions. Breach of a receiver’s statutory duties may result in the receiver being held personally liable for any loss incurred. In addition, misconduct by receivers must be reported to the Director of Corporate Enforcement.

In December 2018, the Company Law Review Group (CLRG), a statutory advisory body, was requested to examine and recommend ways in which company law could be potentially amended to ensure the better governance of receivers appointed to the property of a company.

In May 2019, the CLRG submitted its report which is available publicly on the CLRG website. The Programme for Government includes a commitment to review the regulation of receivers. The CLRG's recommendations will be considered by my officials with a view to progressing any necessary legislation as soon as is practicable.