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As well as being known as a great place to run a successful business, Ireland's Companies (Amendment) Act 1990 means if your business becomes insolvent it may qualify for examinership.
Examinership is a formal court-supervised corporate recovery process that was introduced for companies that are insolvent but still potentially viable. Availing of this court protection allows the exploration of all opportunities that could provide for a company’s survival.
The examinership process
To begin, the company applied to the court for the appointment of an examiner and protection from its creditors. Once approved
- The examiner (usually a practising accountant):
- reviews the company’s affairs;
- considers its viability and;
- if feasible, formulates proposals for the company’s financial survival. The examiner must also confirm the availability of sufficient cash resources to trade during the period of examinership, which is an increasingly difficult proposition.
- The proposals will be put to the creditors of the company in the form of a Scheme of Arrangement
- This will be sent to the creditors along with a notice of a creditors’ meeting
- The examiner will meet the creditors to explain the Scheme of Arrangement further
- The creditors will vote in favour or against the Scheme
- If the creditors reach a positive vote, the proposal will go to the court for approval
- A court approval will lead to the debts being written down as per the proposal
Examinerships can vary but this gives an outline of the process. As your examiner, we will not take over the day-to-day running of the business.
This court protection was introduced in Ireland with a view to benefiting the economy through maintaining employment and helping failing businesses to continue providing revenue to the state in a long term capacity.
