The Companies (Miscellaneous Provisions) (Covid-19) Act 2020 (the “Act”) was enacted during the summer of 2020 in order to help companies and societies comply with statutory obligations in circumstances where the pandemic was affecting the ability of businesses to operate normally.
A further extension of the temporary measures introduced by the Act was announced at the end of last week. Accordingly, Irish companies will be able to avail of the temporary measures, including the following, until 31 December 2022:
- virtual general and creditors’ meetings;
- the execution of documents under seal in counterpart;
- higher monetary threshold for issuing a 21 day letter of demand; and
- extension of the examinership process to a total of 150 days (subject to court approval).
In the announcement, the Minister for Trade Promotion, Company Regulation and Digital, Robert Troy TD said that he expects that this will likely be the last time that the operation of the temporary measures is extended. However, Mr Troy also said that work is continuing to put virtual AGMs and general meetings on a permanent statutory footing.
The extension of the temporary measures until the end of the year is a welcome development given the challenges that business continue to face as a result of the pandemic. The modernisation of the Companies Act 2014 to facilitate virtual general meetings will also be a very positive development and will bring the law in line with current business practices.
