Minister Troy Publishes General Scheme for Small and Micro Business Administrative Rescue Process

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Minister for Trade Promotion, Digital and Company Regulation, Robert Troy T.D., today announced he has secured government approval for the priority drafting of the Companies (Small Company Administrative Rescue Process and Miscellaneous Provisions) Bill 2021. The Bill amends the Companies Act 2014 to provide for a new dedicated rescue process for small and micro companies.

While Ireland’s current rescue framework, examinership, is internationally recognised and successful in its own right, the associated costs mean it may be beyond the reach of small and micro enterprises. The Bill ensures these companies will have access to an alternative framework, which incorporates key elements of the existing examinership model in an administrative context.

Announcing the General Scheme, Minister Troy stated that:

“We are all aware of the enormous pressure business owners currently face in terms of not only their immediate liquidity, but also the sustainability of their business into the future. This is particularly true of small and micro companies, with 78% operating in sectors which have been particularly challenged by the pandemic such as retail, hospitality and the service industry.

“Our response to the crisis has proven successful in mitigating the immediate impact of the pandemic on the sector. However, as the economy re-opens, we must have an appropriate regulatory response which supports fundamentally viable companies to continue to trade and get themselves back on their feet.

“I know that examinership works and saves both companies and employment. However, as it is overseen by the Court from beginning to end, it can be an expensive undertaking – and thus out of reach for your average small company, whether that be a local restaurant or hairdresser.

“The Companies (Small Company Administrative Rescue Process and Miscellaneous Provisions) Bill provides an alternative to examinership, for the benefit of small and micro companies, which is more cost efficient and capable of conclusion within a shorter period of time.”