Ireland · Examinership and the small company rescue process

The rescue process: repudiation of contracts, preparing the rescue plan and the required meetings

the Companies Act 2014 · sections 558P to 558Z, 558ZA and 558ZC to 558ZE

The whole process is built around a 49-day spine. The meeting under section 558T must be fixed for a date no later than 49 days after the date on which the process adviser is appointed (section 558T(4)). The process adviser must, within 49 days of appointment, prepare the report section 558ZA(2) requires, and must comply with the requirements imposed by section 558ZA(3)(a) and (b) within the same 49 days (section 558ZA(4)). A single missed step collapses the timetable rather than delaying it.

The meeting mechanics are strict. Notice in writing in the prescribed form must be given to every person entitled to attend at least 7 days before the day appointed for the meeting (section 558U(2)). Every instrument of proxy must be lodged with the process adviser not later than four o'clock in the afternoon of the day before the meeting or adjourned meeting at which it is to be used (section 558X(1)).

Sections 558P to 558S govern the repudiation, affirmation and variation of contracts during the rescue process, and the notice the process adviser must give a relevant person where section 558P(4)(b) applies (section 558P(7)). As soon as practicable after the passing of the resolution, the process adviser must prepare a rescue plan for the eligible company (section 558Q(2)).

Sections 558T to 558Z govern the meetings of members and creditors, the notice, the proxies, the approval of the plan and the notification that follows. Every notice given to the persons referred to in section 558Z(3) must be accompanied by the documents section 558Z(4) lists, including a copy of the rescue plan as approved under section 558Y. Sections 558ZA to 558ZE govern the report, the notification of the plan and objections to it.

Files 87, 88, 89 and 90 of the IE-COMPANY package cover this situation. File 87 works through repudiation, affirmation and variation of contracts. File 88 works through the preparation of the rescue plan. File 89 works through the meeting of members and creditors, the notice, the proxies and the vote. File 90 works through consideration of the plan, the notifications and any objection, with the date of every step measured against the 49-day spine.

This situation is covered by these files from the pack IE-COMPANY

• File 87 · Rescue process: repudiation, affirmation and variation of contracts
• File 88 · Rescue process: preparation of the rescue plan
• File 89 · Rescue process: the meeting of members and creditors
• File 90 · Rescue process: consideration of, notification of and objection to the rescue plan

ComplianceSME tracks the Companies Act 2014 and issues update files through the membership, so that you are never working from a superseded version. Membership

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