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• Companies (Miscellaneous Provisions) (Covid-19) Act 2020 extended to 9th June 2021
• Continuation of virtual general meetings
• Threshold at which a company is deemed unable to pay its debts remains at €50,000
• Extension of examinership to 150 days remains in place

17 December 2020

The interim period of the Companies (Miscellaneous Provisions) (Covid-19) Act 2020 has been extended to 9th June 2021 following Government approval this week. The Act makes temporary amendments to the Companies Act 2014 and the Industrial and Provident Societies Act 1893 to address issues arising as a result of Covid-19.

The Act ensures that 240,000 companies and 950 industrial and provident societies in Ireland can hold their Annual General Meetings (AGMs) and general meetings by electronic means. It also makes provision in respect of business solvency by increasing the period of examinership to 150 days and increasing the threshold at which a company is deemed unable to pay its debts to €50,000. The continuation of these important amendments will provide additional breathing space to struggling businesses.

The Minister for Trade Promotion, Company Regulation and Digital, Robert Troy T.D. said

“The extension of the interim period of the Companies (Miscellaneous Provisions) (Covid-19) Act in respect of the Companies Act 2014 and Industrial and Provident Societies Act 1893 to 9th to June 2021 was confirmed by Government this week.

“The orders ensure that the changes brought in by the 2020 Act continue to apply and make it easier for businesses to operate during the pandemic. Companies and industrial and provident societies can continue to hold AGMs and general meetings remotely, ensuring they can comply with their statutory obligations while observing the Government’s public health advice.”

He continued,

“More significantly, amendments in respect of insolvency provisions also continue to apply until 9th June 2021. The threshold at which a company is deemed unable to pay its debts and can be wound up by the courts remains at €50,000. There are local businesses across Ireland still struggling with the financial impacts of the pandemic. It is our responsibility to provide them with breathing space where possible.

“The extension to 150 days in examinership remains in place. It is important that viable companies and co-operatives have sufficient flexibility to restructure and trade through the crisis. Extending this temporary provision gives that. I will continue to review the Companies Acts and make any necessary changes to simplify and improve examinership, liquidation and receivership laws in response to the COVID-19 crisis.

“The interim period was designed to give Government the flexibility it requires to adapt to the evolving nature of the pandemic. Extending this period to 9th June 2021 was the right thing to do and gives certainty to business in what are very uncertain times.”