Companies Act

Companies (COVID-19) Act 2020 Introduces Temporary Measures

The Companies (Miscellaneous Provisions) (Covid-19) Act 2020 was commenced on 21st August 2020 and it introduces temporary measures to assist companies and Industrial and Provident Societies (“IPS”) deal with issues due to the impact of COVID-19. One of the key provisions is the ability to hold members and creditor meetings electronically.

Interim Period

The new measures are to last for the interim period expiring on 31 December 2020 and there is also a provision to extend the interim period.

Key provisions

  • Documents under seal to be executed in different counterparts
  • Companies and IPS will have until 31 December 2020 to hold an AGM
  • Enable companies to hold general meetings by electronic means notwithstanding the provisions in the company constitution
  • Changes to general meetings regulations
    • the electronic platform to be used for the meeting,
    • details for access to the electronic platform,
    • the time and manner by which an attendee must confirm his or her intention to attend the meeting,
    • any requirements or restrictions which the company has put in place in order to identify attendees who intend to attend the meeting,
    • the procedure for attendees to communicate questions and comments during the meeting, and
    • the procedure to be adopted for voting on resolutions proposed to be passed at the meeting
    • Click here for more details on company meetings
  • Enable directors to cancel, change the venue or change the means of holding the meeting in order to comply with the public health guidelines
  • Enable directors to withdraw a dividend resolution or reduce the dividend proposed
  • Increase the threshold for the commencement of a winding up by the Court to €50,000
  • Facilitate the virtual holding of creditors’ meetings in voluntary liquidations, examinerships and statutory schemes of arrangements
  • Extend the maximum period of the examinership in exceptional circumstances from 100 to 150 days

 

Note: The content of this article is provided for information purposes only and does not constitute legal or other advice.

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