Local Fianna Fáil Minister of State, Deputy Robert Troy, has announced the commencement of the Companies (Rescue Process for Small and Micro Companies ) Act 2021.
The commencement of the Act makes the small company administrative rescue process, available to all eligible small and micro businesses both locally and nationally.
“Ireland’s small and micro companies are the backbone of our local communities and our national economy, but the past two years has seen a disproportionate and negative impact on these businesses as a result of the pandemic. Throughout this period and to ensure their long-term survival Government prioritised policies to support this vital sector.
“A central part of that effort has involved a complete review of the restructuring and rescue mechanisms available to small companies in difficulty. This entailed a comprehensive review of the existing regulatory framework and an assessment of all available policy options. Arising from this review we set ourselves the ambitious task of creating an entirely new procedure to address the specific needs of small companies.
“This work has been a personal priority since my appointment as Minister, therefore I am very pleased to announce the commencement of the new Small Company Administrative Rescue Process,” Deputy Troy asserted.
The legislation provides a new simplified restructuring process for viable small companies which is more cost and time-effective, initiated by companies themselves, and commenced without the need for Court approval.
“This rescue process is modelled on our existing examinership process and founded on a bedrock of well understood procedures and precedents. It is a simplified and effective process that I believe will give small and micro companies a genuine opportunity to restructure and continue to trade. If any small business is experiencing temporary difficulties but is fundamentally viable, I would encourage them to consider this process as a suitable option,” Deputy Troy concluded.
