Wicklow TD Stephen Donnelly has published legislation that will make examinership quicker and cheaper for small businesses.
The Companies (Amendment) Bill 2014 will be discussed in the Dáil tonight and tomorrow.
Donnelly’s Bill will improve examinership for small businesses with less than 50 employees and a turnover of less than €10 million.
It makes three main changes to the examinership process: less court involvement; the ability of the examiner to impose lending conditions on secured lenders over a period of five years; and the ability of the examiner to impose changes to leases over a period of five years, based on a minimum term of market plus 7%.
“The net effect of these changes is that there will be less legal red tape, lower costs and certainty regarding the costs of doing business going forward for companies who go into examinership,” Donnelly said.
Donnelly estimates that 70% of the workforce in Wicklow and East Carlow work for small and medium-sized businesses.
This means the bill would offer improved legislative protection to around 40,000 workers in the constituency, he says