Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
Link to this: Individually | In context | Oireachtas source

151. To ask the Minister for Enterprise, Trade and Employment if he has received any report from the Corporate Enforcement Authority on the meeting in January 2023 between the Corporate Enforcement Authority, workers of a company (details supplied) and this Deputy, a meeting that was facilitated by the Secretary General of his Department following a parliamentary question raised by this Deputy with the Taoiseach on 13 December 2022 regarding the findings from a recently made film in relation to the liquidation of said company; if he has not received such a report, if he will seek it; and if he will make a statement on the matter. [11420/23]

Dara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

All companies are required to comply with the extensive provisions of the Companies Act 2014. Alleged breaches of company law can and should be brought to the attention of the Corporate Enforcement Authority (CEA).

The matters raised by the Deputy were brought to the CEA’s attention by the Department as is appropriate. It would not be correct to say that the meeting was facilitated by my officials, instead, I understand that the CEAinvited the Deputy to meet and discuss his concerns.

Section 944D (4) of the Companies Act 2014 provides that the CEA shall be independent in the performance of its functions. The CEA carefully considers all information received. The CEA is a statutorily independent body and operates under a statutory duty of confidentiality and does not comment on individual matters. I, as Minister have no direct function in any action or decision taken by the CEA in relation to its consideration of the matters raised by the Deputy.

It is my intention to bring forward legislative proposals, shortly, which will change company law and employment rights law in line with the Plan of Action – Collective Redundancies following Insolvency. The Plan sets out a range of commitments to enhance further the protection afforded to employees who find themselves in a collective redundancy situation following insolvency. It includes a suite of measures including amendments to employment law and company law legislation and the setting up of an Employment Law Review Group.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
Link to this: Individually | In context | Oireachtas source

152. To ask the Minister for Enterprise, Trade and Employment if his Department was aware in the course of the liquidation of a company (details supplied); if so, when his Department became aware of the pre-pack administration package put together in April 2019 by several financial entities, involving a floating charge loan of £200 million to the company's UK entity, which was subsequently injected into it but for which the Irish and Danish stores were made co-guarantors, and the use of the 12-month rule in Irish law concerning the fixing of these charges on the company in Ireland, and the fact that the liquidation of the company's Irish operations was announced precisely 12 months later on the day such a liability became legally valid in Irish law; and if he will make a statement on the matter. [11421/23]

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
Link to this: Individually | In context | Oireachtas source

154. To ask the Minister for Enterprise, Trade and Employment if his Department is aware that workers of a company (details supplied) were initially told the company debt was €22 million in May 2020, and in July that debt had risen to more than €300 million, and that the workers were also told that the revenues from the online sales of a website would be used in the liquidation, which subsequently turned out not to be the case; and if he will make a statement on the matter. [11423/23]

Dara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 152 and 154 together.

The liquidation referred to by the Deputy is proceeding under the supervision of the High Court in accordance with the Companies Act 2014 and the Government cannot interfere with that process. It is a matter for the Courts to decide on the relevance and import of any information that comes to light during a court supervised liquidation process.

The procedures for liquidation are set out in the Part 11 of the Companies Act 2014. In general terms, a company is permitted to initiate a winding-up where it has complied with the requirements of the Companies Act 2014. A company both during normal operation and in a winding-up process must of course also abide by all relevant legal requirements, including the treatment of employees and creditors. However, the provisions of the Companies Act 2014 provide safeguards to prevent the abuse of the liquidation system. These include preferential payments under section 621 which provide for categories of employee entitlement such as wages owed, holiday remuneration, superannuation benefits, ill health payments and social welfare contributions. The Companies Act 2014 also has a significant number of provisions that address transactions that seek to deprive creditors of the assets in the period leading up to insolvency

Irish company law provides that, where a company enters insolvent liquidation, the liquidator, in addition to his/her statutory functions and duties, has certain reporting obligations to the Corporate Enforcement Authority (CEA). All liquidators' reports received are carefully examined by reference to the facts and circumstances of each case. In particular, each case is examined with a view to establishing whether there have been breaches of company directors' duties or other breaches of company law. The CEA operates under a statutory duty of confidentiality and, as such, does not comment on individual matters. However, all representations received are carefully considered. The matters raised by the Deputy were brought to the CEA’s attention by the Department as is appropriate. The CEA does not report to Government on its investigations.

Government recognised the exceptional circumstances of the case, which arose during the height of Covid-19, and took a number of unique actions on foot of the closure.

1. Improvements were made to the quality and circulation of information to workers as creditors through the Companies (Rescue Process for Small and Micro Companies) Act 2021. In addition, a statutory obligation was also imposed on directors to consider the interests of creditors in the period leading up to insolvency through the European Communities (Preventive Restructuring) Regulations 2022.

2. Furthermore, following extensive engagement with the social partners, the ‘Plan of Action on Collective Redundancies following Insolvency’ was published in June 2021. Implementation of the Plan of Action will enhance the protection of employees in a collective redundancy.

It is the intention of the Minister for Enterprise, Trade and Employment to bring forward very shortly legislative proposals which will change company law and employment rights law in line with the Plan of Action. The Plan sets out a range of commitments to enhance further the protection afforded to employees who find themselves in a collective redundancy situation following insolvency. It includes a suite of measures including amendments to employment law and company law legislation and the setting up of an Employment Law Review Group.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
Link to this: Individually | In context | Oireachtas source

153. To ask the Minister for Enterprise, Trade and Employment if his Department was aware that a company (details supplied) had not renewed its 36 trademarks in the Republic of Ireland in 2020 prior to the liquidation of the company; and if he will make a statement on the matter. [11422/23]

Simon Coveney (Cork South Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Controller of Intellectual Property is responsible for the administration and maintenance of the Trade Marks Register in Ireland. There were 72,470 registered trade marks on the Trade Marks Register of the Intellectual Property Office of Ireland in 2020.

Section 48 of the Trade Marks Act 1996 provides proprietors of trade marks with the opportunity to renew the registration of their trade marks for a prescribed fee and duration. The renewal of trade marks is not mandatory, and therefore does not place an obligation upon trade mark proprietors to renew their registrations. The renewal or otherwise of individual trademarks is a matter for the holder of the trademark concerned, and the Department does not monitor the renewal or otherwise of individual trade marks rights.