Companies Act 2014

F320[Procedure where process adviser unable to prepare rescue plan

558S

558S. (1) This section applies where the process adviser appointed in respect of an eligible company is unable to prepare a rescue plan for the company.

(2) As soon as practicable after the process adviser becomes aware of that fact, the process adviser shall—

(a) prepare a report setting out the matters specified in subsection (3),

(b) give a copy of the report to the directors of the eligible company, and

(c) give notice of that fact to—

(i) employees of the eligible company,

(ii) members of the eligible company,

(iii) creditors, and

(iv) the Revenue Commissioners.

(3) The matters referred to in subsection (2)(a) are—

(a) the reasons why a rescue plan could not be prepared for the eligible company, and

(b) recommendations as to the next steps to be taken by the directors of the eligible company (including the winding up of the company).

(4) The recommendations of the process adviser referred to in subsection (3)(b) shall not be binding on the eligible company or the directors of the company.

(5) Notwithstanding subsection (4), where—

(a) the process adviser recommends that the eligible company be wound up,

(b) the directors of the eligible company decide that the company should continue to trade,

(c) the eligible company continues to trade in pursuance of that decision, and

(d) within 6 months of that decision the eligible company is wound up,

the court may take that decision into account for the purposes of any application under section 610.]

Annotations:

Amendments:

F320

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.