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Pandemic provision for virtual AGMs to continue

The Companies (Miscellaneous Provisions) (COVID-19) Act 2020, which allows for virtual general meetings, is to be extended to 9 June 2021.

The interim period of the act has been extended, following Government approval this week. 

The act makes temporary amendments to the Companies Act 2014 and the Industrial and Provident Societies Act 1893 to address issues arising as a result of COVID-19.

It ensures that 240,000 companies and 950 industrial and provident societies in Ireland can hold their annual general meetings and general meetings by electronic means.

It also makes provision in respect of business solvency by increasing the period of examinership to 150 days, and increasing the threshold at which a company is deemed unable to pay its debts to €50,000.

Breathing space

The continuation of these important amendments will provide additional breathing space to struggling businesses, a Department of Enterprise, Trade and Employment statement said this morning (17 December).

Robert Troy (Minister for Trade Promotion, Company Regulation and Digital) said: “The orders ensure that the changes brought in by the 2020 act continue to apply, and make it easier for businesses to operate during the pandemic.

“Companies and industrial and provident societies can continue to hold AGMs and general meetings remotely, ensuring they can comply with their statutory obligations while observing the Government’s public-health advice.

Insolvency provisions

“More significantly, amendments in respect of insolvency provisions also continue to apply until 9 June 2021.

"The threshold at which a company is deemed unable to pay its debts and can be wound up by the courts remains at €50,000. There are local businesses across Ireland still struggling with the financial impacts of the pandemic. It is our responsibility to provide them with breathing space where possible.

Viable companies

“The extension to 150 days in examinership remains in place. It is important that viable companies and co-operatives have sufficient flexibility to restructure and trade through the crisis,” he said.

“Extending this temporary provision gives that. I will continue to review the Companies Acts and make any necessary changes to simplify and improve examinership, liquidation and receivership laws in response to the COVID-19 crisis.”

As reported on Gazette.ie, MH&C lawyer Paul Egan of the CLRG had called for an extension until 2021 to the provision for virtual AGMS.