Ireland: The Small Company Administrative Rescue Process

The Department for Enterprise, Trade and Employment has published a guide for the new small company administrative rescue process, introduced by the Companies (Rescue Process for Small and Micro Companies) Act 2021: see here (pdf).

Ireland: The Companies (Rescue Process for Small and Micro Companies) Bill 2021 - an update

The Companies (Rescue Process for Small and Micro Companies) Bill 2021, the purpose of which is to amend the Companies Act 2014 in order to introduce a new rescue process for small and micro companies, was introduced in the Dáil Éireann last month. A copy of the Bill, as introduced, is available here. Yesterday the Bill completed its passage through the Seanad Éireann and will become law on receiving the assent of the President. The explanatory memorandum published to accompany the Bill is available here (pdf). A copy of the Act will be published here in due course.

Ireland: a new rescue regime for small companies

The Department of Enterprise, Trade and Employment announced, earlier this week, that the Government had approved the publication of the Companies (Rescue Process for Small and Micro Companies) Bill 2021: see here. The purpose of the proposed legislation is to amend the Companies Act 2014 in order to introduce a new rescue process for small and micro companies. An overview of the Bill's provisions is available here. 

Ireland: new corporate rescue regime for small companies // virtual shareholder meetings

The Department of Enterprise, Trade and Employment published a press release last week in which it announced that approval had been gained for the priority drafting of the Companies (Small Company Administrative Rescue Process and Miscellaneous Provisons) Bill 2021: see here. The Bill will amend the Companies Act 2014 in order to introduce a new rescue process for small and micro companies.

The Bill will also - hence the word miscellaneous in the title - make some other changes to the 2014 Act and the Industrial and Provident Societies Act 1893 including making permanent provisions for the holding of virtual meetings (such meetings were introduced as a temporary measure under the Companies (Miscellaneous Provisions) (Covid-19) Act 2020).

The press release highlights the key features of the Bill. 

Europe: Commission proposes new insolvency Directive

The European Commission yesterday published its proposals for a new insolvency Directive, the purpose of which is to ensure that all Member States have key principles in place regarding restructuring and 'second chance' frameworks, and to increase the efficiency of existing insolvency procedures. For further information see: Proposal (pdf) | Q & A | Factsheet (pdf) | Country specific factsheets |.

UK: a review of the corporate insolvency framework

A joint consultation paper - from the Insolvency Service and Department for Business, Innovation and Skills - was published today and seeks views on reforms to the corporate insolvency framework: see here (pdf). Four main proposals are outlined, including the introduction of a new moratorium as well as reforms designed to make it easier for companies to continue trading during restructuring. Further information, including a response form and impact assessment, is available here.

South Africa: business rescue - arbitration and the moratorium on bringing legal proceedings

This year the Supreme Court of Appeal has heard several cases concerning the business rescue framework contained in the Companies Act 2008. Within this framework, section 133 of the Act imposes a moratorium on the bringing or continuing of legal proceedings, including enforcement action. Today, in Chetty v Hart (20323/14) [2015] ZASCA 112, the court held this moratorium applied to arbitration proceedings. A summary is available here (pdf).

Earlier this year, in Cloete Murray NO v FirstRand Bank Ltd (20104/2014) [2015] ZASCA 39, the court held that 'enforcement action' under section 133 did not include the cancellation of an agreement concluded prior to the start of the business rescue proceedings. A summary is available here (pdf).

South Africa: 'enforcement action' during business rescue proceedings

The Supreme Court of Appeal gave judgment towards the end of last month in Cloete Murray NO v FirstRand Bank Ltd (20104/2014) [2015] ZASCA 39: see here (pdf). The operation of section 133 of the Companies Act 2008 was at issue: it imposes restrictions on the bringing or continuing of legal proceedings against the company including enforcement action. The court held that 'enforcement action' did not include the cancellation of an agreement concluded prior to the start of the business rescue proceedings. A summary of the decision is available here (pdf).

Europe: Commission consults on insolvency law harmonisation

The European Commission has begun a consultation seeking views on the need for, and feasibility of, harmonising certain aspects of insolvency law: see here. The consultation is part of work the purpose of which is to develop a rescue and recovery culture across the Member States. Amongst the questions on which the Commission seeks views are several concerning the duties, liability and disqualification of company directors.

South Africa: Supreme Court of Appeal considers concept of 'business rescue'

The Supreme Court of Appeal gave judgment earlier this week in Oakdene Square Properties (Pty) Ltd v Farm Bothasfontein (Kyalami) (Pty) Ltd (609/2012) [2013] ZASCA 68: see here or here (pdf). The case is noteworthy because it provided the court with its first opportunity to consider the concept of 'business rescue' as introduced by chapter 6 of the Companies Act 2008. A summary of the decision is available here (pdf).