Companies (Miscellaneous Provisions) (Covid-19) Act 2020 extended to 31 December 2022

The Companies (Miscellaneous Provisions) (Covid-19) Act 2020 (the “Act”) which was commenced on 21 August 2020 has been further extended to 31 December 2022. 

The Act provides for temporary amendments to the Companies Act 2014 and the Industrial and Provident Societies Act 1893 to mitigate the impact of Covid-19 on businesses. 

What is the Companies (Miscellaneous Provisions) (Covid-19) Act 2020?

The Act was introduced in response to the economic difficulties placed on the normal operation of business due to Covid-19. It introduced an interim period in which to provide businesses with support. This interim period has now been extended to 31 December 2022, the motivation for which Minister Robert Troy TD stated “is very much focused on ensuring that businesses are provided with adequate time to recover from the difficult trading circumstances of the pandemic.” 

What are the main features of the Act? 

The main features of the Act are as follows:

• Measures will be operative until 31 December 2022;
• Continuation of general and creditors’ meetings may be held virtually;
• Extension of examinership process to a total of 150 days;
• Threshold at which a company is deemed unable to pay its debts remains at €50,000;
• Provision of documents which are required to be executed under seal, the seal and signatures may be executed in counterpart.

The Act is intended to mitigate the ongoing effect on the normal operation of business. Minister Robert Troy TD stated the extension is likely to be the final extension of the Act, with work to commence on placing “virtual AGMs and general meetings on a permanent statutory footing.”

For further information contact Elaine McGrath emcgrath@reddycharlton.ie