Director Of Corporate Enforcement Announces Change
19 February 2009
Category: Legal Articles
Director of Corporate Enforcement announces a change in the reporting practice of liquidators to his office.
Liquidators of insolvent companies are required pursuant to section 56 of the Company Law Enforcement Act, 2001 to provide to the Director of Corporate Enforcement a report in the prescribed form within 6 months after his or her appointment, and at intervals as required by the Director thereafter. The report is divided into 7 sections covering (1) Liquidator’s details (2) Company details (3) Company directors (4) Statement of Affairs, Accounts and Report to Creditors (5) Proceedings (6) Final Report and (7) Liquidator’s Statement.
The current practice is that liquidators provide an annual report to the Director until the liquidation is completed and a final report on completion. The Director has decided that, in future, liquidators of insolvent companies will generally not be required to submit further or final reports to his office in cases where the decision has been taken to definitively relieve, or definitively not relieve the liquidators of their statutory obligation to apply to court to have the directors restricted pursuant to section 150 of the Companies Act, 1990.
As well as reducing the costs of liquidators submitting numerous reports to the Director, this new measure will also assist the office of the Director in managing the workload arising from the increased number of insolvent liquidations in 2009.
The Director has stated in the recent information notice that he will keep the revised procedures under review to ensure, in particular, that the integrity and effectiveness of the section 56 process is maintained
In the meantime, liquidators are still required to inform the Office of the Director of Corporate Enforcement of the outcome of any restriction applications made by them and the Director may at his discretion seek reports on the progress of particular liquidations.
The content of this article is provided for information purposes only and does not constitute legal or other advice. Mason Hayes & Curran (www.mhc.ie) is a leading business law firm with offices in Dublin, London and New York.
© Copyright Mason Hayes & Curran 2009. All rights reserved.