Section 633 of the Companies Act 2014 (“2014 Act”) introduced mandatory qualifications for persons undertaking work in relation to the winding up of companies.
For the first time in Irish law, there are now minimum requirements for those wishing to act as liquidators in the context of corporate insolvency. In summary, the categories of those individuals who will be entitled to act as company liquidators as set out in the 2014 Act are as follows:-
- Category 1: members of a prescribed accountancy body (‘PAB’) holding a practising certificate;
- Category 2: Solicitors holding a practising certificate;
- Category 3: Members of other professional bodies recognised by IAASA (currently none);
- Category 4: Persons qualified under the laws of another EEA State; and
- Category 5: Persons with practical experience of the winding up of companies and knowledge of relevant law who are authorised by the Irish Auditing and Accounting Supervisory Authority (‘IAASA’) to act as a liquidator2.
That section identifies the category of persons who will be authorised to act as liquidator of a company. It is an offence under section 634 of the 2014 Act for a person to act as a liquidator of a company at a time when he or she is not qualified for appointment to that office.
Application to IAASA
Anyone who acts as a liquidator and does not fall into Category 1-4 must apply to IAASA to be authorised to act as a liquidator.
An application to IAASA for authorisation must be made on the prescribed form which is available on IAASA’s website. Applications may be made by individuals only; there is no provision for authorisation to be granted to firms, partnerships, companies, etc.
Applications will be considered in accordance with Category (5) of the Table to section 633 of the 2014 Act.
Category (5) of the Table to section 633 empowers IAASA to grant authorisations to an individual who applies to IAASA within 2 years from 1 June 2015 and has paid the prescribed fee to IAASA on the grounds that the person satisfies each of the following:
(i) the person has, prior to 1 June, 2015, obtained adequate relevant experience of the winding up of companies and knowledge of the law applicable thereto by virtue of the person’s either having-
- been employed in relevant work by a person who at the relevant time was a member of a prescribed accountancy body, a solicitor or a member of a professional body recognised by IAASA; or
- engaged on his or her own account in relevant work; or having practised in an EEA state (not being the State) as a liquidator; and
(ii) the person is, in the opinion of IAASA, after consultation with the Director of Corporate Enforcement, a fit and proper person to act as a liquidator; and
(iii) the person is not:
- a member of a prescribed accountancy body; or
- a solicitor holding a current practising certificate issued by the Law Society of Ireland;
- a member of any other professional bodies recognised by IAASA for the purpose of Section 633 of the 2014 Act; and
- a person entitled under the laws of an EEA state (not being the State) to act as a liquidator in insolvency proceedings.
Application Fee
The application fee is €500. This fee must be forwarded with the application and is not returnable if an application is refused or withdrawn
Click Here for Guidance Notes on the Application Process and Criteria from IAASA
Please Note:
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