Examinerships in the Circuit Court.
Created by Connolly O'Neill
The Companies (Miscellaneous Provisions) Act, 2013 (the “Act”) was signed into law on 24 December 2013. What it is hoped will be a new SME-friendly examinership regime. Examinership is the legal mechanism by which an ailing but potentially viable company can be rescued. Up until now, examinership s were handled in the High Court, which added complexity and huge costs to businesses that were already under financial pressure. Now, the Circuit Court has jurisdiction where the company is a “small company”. There are qualifying conditions, but the change covers most Irish SME’s, the conditions are satisfied where two or more of the following criteria are met for a particular year:
* The turnover for that year does not exceed €8.8 million; * The balance sheet total for that year does not exceed €4.4 million; * The average number of employees in the company for that year does not exceed 50. Importantly, the Act enables a “small company” to elect to apply directly to the Circuit Court (rather than the High Court) for the appointment of an examiner.