Extension of “Covid-19” Act to Q1 2022

Posted by Kathryn Maybury on Monday, 13 December 2021

A post by Kathryn Maybury | Managing Director | KOMSEC Limited | Company Secretarial Services | Corporate Governance | Compliance |

Tel: +353 (0) 1 2107595 Email: kmaybury@komsec.ie

 

The Government has approved the extension of the interim period of the Companies (Miscellaneous Provisions) (Covid-19) Act 2020 to 30^th April 2022.

• Director and Member Meetings can continue to hold virtual 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.

Introduction of SCARP (Small Companies Administrative Rescue Process)

This is a practical piece of legislation intended to make the Examinership process more accessible and less expensive. It provides for a tight timeline for the entire process without the company having to go to Court.

Brief highlights of SCARP

• To avail of SCARP a company must be “small” or “micro” – no more than 50 employees, turnover does not exceed €12m, balance sheet does not exceed €6m.

• Company is unable to pay its debts

• The company cannot have appointed an Examiner or Process Advisor (insolvency practitioner) within previous 5 years.

• Process Advisor assesses viability of the company and its ability to trade its way out of current difficulties.

• Entire process should be completed within 70 days.

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