Changes to company law

rte.ie/news/2011/0530/compan … iness.html

Scanning through it

Part 8 - Receiverships
Was hoping for a big change here to simplify receiverships and copy the Administration laws in UK. No such luck. It reads very much like the current law.

Except that 439 and 440 prescribe duties on Receivers to report to ODCE and DPP. This is new.They always had to notify of offences but this is much more prescribed and defined.
Still its not a formalised decree that they have to investigate a directors conduct. That’s still a Liquidators duty.

623 is interesting. It introduces a closed shop as to who can act as a liquidator and effectively restricts it to the professions. There can be be no non-profession new entrants into the industry. Possibly also restricts other European professionals from being liquidators in Ireland? Is that allowed?

600 is interesting. A Receiver can now take a Reckless Trading action against director. It used to be just liquidator (or examiner)
EDIT - this is not new :blush:

Is 410 new?
Extension of time for registration of charges and rectification of register
Looks like a godsend for bad banks

Would that be retrospective? In that a receiver appointed after the act can take a Reckless Trading action against a director for actions that happened before the act? (I presume the definition and crime of RT hasn’t changed).

I doubt it could be retrospective. New Companies Act never are. Otherwise Reckless Trading is as it always was with the same huge get out clauses and a pile of case law to protect bad directors by setting the bar of proof very high.

Edit - I just looked at the old reckless trading section 297A. A Receiver could always bring these Reckless Trading Actions :blush:
But the principle still stands. Receivers duties to report on directors actions are to be expanded.