The expansion of this”interim period” under the Act guarantees 240,000 businesses and 950 industrial and provident societies in Ireland can maintain their AGMs and lenders meetings virtually.
Additionally, it makes provision in regard to company solvency by raising the amount of examinership to 150 times and raising the threshold where a firm is deemed unable to pay its own debts to $50,000.
Robert Troy, minister for commerce marketing, digital and business regulation, stated:”The interim period was developed to provide authorities the flexibility it has to adapt to the growing character of the outbreak. Extending this period towards the close of the year has been the sensible thing to do and provides necessary certainty to company when it needs it .
“While the problem in connection with Covid-19 is improving and we’re optimistic that the restrictions will probably continue to be eased, so it remains essential to make certain the changes brought from the 2020 Act continue to use to make it much easier for companies to run throughout the pandemic. It’s important to me personally that there’s certainty for company as the market reopens.”
He continued:”I understand companies are planning AGMs for 2021 and now I wish to make sure that these may be held in accord with government’s general health information.
“Likewise, amendments in regard to bankruptcy provisions also continue to use before the close of the year. The threshold where a firm is deemed unable to pay its own debts and could be wound up by the courts stays at $50,000. You will find local companies across Ireland still fighting with the fiscal impacts of the outbreak. It’s our obligation to supply them with breathing distance where potential.
“The expansion to 150 times in examinership stays in place. It’s necessary that feasible businesses and co-operatives have enough flexibility to restructure and transaction through the catastrophe. Assessing this temporary supply provides that.
“I understand that this announcement will soon be broadly welcomed by company and I wish to assure the company community which I will continue to provide pragmatic answers to the challenges emerging in the pandemic.”