On the 17th December 2020 the Government announced that the interim period of the Companies (Miscellaneous) (Covid-19) Act 2020 (the “Act”) had been extended to the 9th June 2021 by Ministerial Order. The Act was initially introduced to deal with the many practical & administrative issues faced by companies due to the Covid-19 pandemic and was due to expire on the 31st December 2020.
Please see our earlier briefing on the Companies (Miscellaneous) (Covid-19) Act here.
The effect of the extension of this interim period is that –
- General meetings may continue to be held virtually;
- The examinership period of protection remains at a maximum of 150 days;
- Documents required to be executed under seal may continue to be executed in counterpart;
- The threshold for a company to be deemed insolvent remains at €50,000.
The Minister for Trade Promotion, Company Regulation and Digital, Robert Troy stated that
“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.”
“The interim period was designed to give Government the flexibility it requires to adapt to the evolving nature of the pandemic. Extending this period to 9th June 2021 was the right thing to do and gives certainty to business in what are very uncertain times.”
It is noteworthy that Minister Troy also stated that the situation will be continued to be reviewed in response to the pandemic.
Professional advice should always be taken before acting on any of the matters discussed. Please contact a member of our team should you wish to discuss this topic further.