Companies Act 2014

Requirements where eligible company wishes to avail of rescue plan

558B

558B. (1) This section applies where—

(a) the conditions specified in subsection (2) are met in relation to an eligible company, and

(b) the directors of the eligible company wish to avail of a rescue plan.

(2) The conditions referred to in subsection (1) are—

(a) the eligible company is, or is likely to be, unable to pay its debts,

(b) no resolution subsists for the winding up of the eligible company,

(c) no order has been made for the winding up of the eligible company,

(d) the directors of the eligible company have not passed a resolution for the appointment of a process adviser in respect of the eligible company during the period of 5 years ending on the date on which it is proposed that such a resolution be passed by the eligible company,

(e) no examiner has been appointed to the eligible company during the period of 5 years referred to in paragraph (d).

(3) For the purposes of subsection (2)(a), an eligible company is unable to pay its debts if—

(a) it is unable to pay its debts as they fall due,

(b) the value of its assets is less than the amount of its liabilities, taking into account its contingent and prospective liabilities, or

(c) the circumstances set out in section 570(a), (b) or (c) are applicable to the eligible company.

(4) A director of the eligible company shall—

(a) make a full inquiry into the affairs of the eligible company,

(b) prepare in the prescribed form a statement specifying the information set out in subsection (5),

(c) by statutory declaration confirm that he or she has complied with paragraph (a), and

(d) submit the statement and the statutory declaration to a process adviser.

(5) The information referred to in subsection (4)(b) is—

(a) particulars of the eligible company’s assets, debts and liabilities,

(b) the names and addresses of the eligible company’s creditors,

(c) particulars of each security given by the eligible company, including the name of the secured creditor and the date on which it was given, and

(d) such further or other information as may be prescribed.

(6) Where any false or misleading statement has been included in the statement of affairs referred to in subsection (4), any director of the eligible company who is in default shall be guilty of a category 2 offence.

(7) In any proceedings against a person in respect of an offence under subsection (6), it shall be a defence to prove that, having exercised all reasonable skill and care, the defendant had reasonable grounds for believing and did, up to the time of the issue of the document concerned, believe that the statement concerned was true.

(8) In this section, "rescue plan" means a plan for an eligible company under this Part that is intended to secure the survival of the company, and the whole or any part of its undertaking, as a going concern.]

Annotations:

Amendments:

F303

Inserted (7.12.2021) by Companies (Rescue Process for Small and Micro Companies) Act 2021 (30/2021), s. 3, S.I. No. 673 of 2021.

Editorial Notes:

E86

Power pursuant to subs. (4)(b) exercised (8.12.2021) by Companies Act 2014 (Prescribed Form and Notice) Regulations 2021 (S.I. No. 675 of 2021, in effect as per reg. 1(2).