Companies Act 2014

529.

Incurring of certain liabilities by examiner

529. (1) Any liabilities incurred by the company during the protection period which are specified in subsection (2) shall be treated as expenses properly incurred, for the purpose of section 554, by the examiner.

F282[(2) The liabilities referred to in subsection (1) are those certified in writing by the examiner, at the time they are incurred, to have been incurred in circumstances where, in the opinion of the examiner, the survival of the company as a going concern during the protection period would otherwise be seriously prejudiced, and shall include, at least:

(a) the payment of fees for and costs of negotiating or confirming a scheme of arrangement;

(b) the payment of fees for and costs of seeking professional advice connected with the examinership;

(c) without prejudice to other protections provided in any other enactment, the payment of employees’ wages for work already carried out;

(d) any payments and disbursements made in the ordinary course of business other than those referred to in paragraphs (a), (b) or (c).]

F283[(2A) In the event of any subsequent winding up of a company under Part 11 within 6 months of the end of the protection period, liabilities referred to in subsection (1) incurred as part of a transaction that was –

(a) reasonable, and

(b) immediately necessary for the negotiation of the scheme of arrangement,

shall not be declared void, voidable or unenforceable on the ground that the transaction is detrimental to the general body of creditors unless there are other reasons why the transaction should be declared void, voidable or unenforceable.]

(3) In this section “protection period” means the period, beginning with the appointment of an examiner, during which the company is under the protection of the court.

Annotations:

Amendments:

F282

Substituted (27.07.2022) by European Union (Preventive Restructuring) Regulations 2022 (S.I. No. 380 of 2022) reg. 13(a), subject to restriction on application in reg. 3.

F283

Inserted (27.07.2022) by European Union (Preventive Restructuring) Regulations 2022 (S.I. No. 380 of 2022) reg. 13(b), subject to restriction on application in reg. 3.