SFA welcomes new rescue process for small firms
SFA welcomes the announcement that the Cabinet has approved the priority drafting of the Companies (Small Company Administrative Rescue Process and Miscellaneous Provisions) Bill 2021.
Designed as an alternative to examinership, this Bill will bring in efficient and timely restructuring for those companies worst hit by the devastation of Covid-19 and is a huge step forward in improving the business environment for entrepreneurs and small business owners. SFA had called for reform of insolvency and restructuring laws in its ‘Moving the economy forward after COVID-19’ paper published last year.
Commenting on today’s announcement, Sven Spollen-Behrens, SFA Director said: “Despite the optimism around the vaccine rollout, the domestic economy has been devastated by the coronavirus crisis. If we want to save small business owners and rebuild the economy, then this Bill needs to be passed through the Houses of the Oireachtas before the summer recess.
“From our meetings with the Minister for Trade Promotion, Digital and Company Regulation, Robert Troy TD, I know that this is his priority, but I would urge the wider government and all members of the Oireachtas to work together to prioritise this Bill into legislation.
“If the intent of the proposed Bill is to facilitate corporate restructuring for small firms in a manner with similar outcomes to the examinership process then all must be done to ensure that the new process is low cost, it avoids unnecessary and onerous administration and regulation and that it meets its aim to be timely.”
Spollen-Behrens concluded: “Business is ready to work with Government, to ensure the Bill works for small firms and that it is implemented before the summer recess.”