Thursday, 7 April 2022
Department of Enterprise, Trade and Employment
55. To ask the Minister for Enterprise, Trade and Employment if he will provide an update on the company law reform group report on splitting of assets, recommendations made and plans for publication and implementation; and if he will make a statement on the matter. [18423/22]
The Company Law Review Group (CLRG) submitted its report on the consequences of certain corporate liquidations and restructuring practices, including splitting of corporate operations from asset holding entities in group structures in December 2021.
The issues considered in the report are complex and required extensive discussion and analysis by the CLRG. The CLRG ultimately concluded that the incidence of abusive practices in corporate restructuring, while attracting significant attention, is in fact low. This conclusion is supported by the Office of Director of Corporate Enforcement which notes that its reviews of liquidations indicate that in over 90% of all liquidations, company directors had acted honestly and responsibly.
Notwithstanding this, the CLRG made eight recommendations for potential amendment to the Companies Act and are intended to further enhance the regulatory framework. The Report has been considered by officials from my Department in the context of the Plan for Action on Collective Redundancies following Insolvency. I have considered their analysis and proposals, and intend for proposed amendments reflecting the consequences of certain corporate liquidations and restructuring practices be carried through a Companies (Miscellaneous Provisions) Bill.
Preparations are underway on this legislation and my officials are also considering provisions in the areas of corporate supervision and enforcement, and other matters including rebalancing the provisions regarding audit exemptions for small companies.
The Report will be made publicly available on the CLRG's website shortly.