ISME welcomes the commencement of the Companies (Rescue Process for Small and Micro Companies) Act 2021
The Irish SME Association (ISME) is delighted to welcome the commencement of the Companies (Rescue Process for Small and Micro Companies) Act 2021 on 7th December 2021. Having recognised the potential for so many businesses to become insolvent during the pandemic lockdown, ISME has campaigned for an affordable examinership regime for small enterprise since April 2020.
To avail of the rescue process, a company:
- must be a small or micro company
- is, or is likely to be, unable to pay its debts;
- must not be in liquidation;
- must not have appointed an examiner in the previous 5 years;
- If a receiver has been appointed to the company, that receiver has only been appointed for less than 3 working days.
A company availing of rescue must be viable and capable of trading its way out of its current difficulties. Company viability is the first test a Process Adviser must make following their appointment to a company.
Neil McDonnell, CEO of ISME said: “Unfortunately, small company rescue will not save the majority of businesses which become insolvent. However, the employees and owners of the 10% to 15% of insolvent businesses which can typically be rescued deserve that second chance.
ISME is grateful to Minister Humphreys, Tánaiste Varadkar, Minister of State Troy, and all the staff of the Department of Enterprise and Employment who worked so hard to enact this important legislation so quickly, and Barry Lyons Solicitors for their commercial legal advice.”
Details of the small company rescue process are available here.
Issued on behalf of ISME by Heneghan