Virtual agms to continue as measures extended

Companies get ‘breathing space’ on examinership, debts

Photograph: iStock

Photograph: iStock

 

Companies can continue to hold virtual general meetings following the extension of provisions introduced as a result of the pandemic.

The legislation also increases the period of examinership to 150 days and ups the threshold at which a company is deemed unable to pay its debts to €50,000.

The interim period of the Companies (Miscellaneous Provisions) (Covid-19) Act 2020 has been extended to April 30th 2022. The act makes temporary amendments to the Companies Act 2014 and the Industrial and Provident Societies Act 1893, ensuring that 240,000 companies and 950 industrial and provident societies in Ireland can hold annual general meetings (agms) and general meetings online.

However, virtual meetings may soon be commonplace. Minister for Trade Promotion, Company Regulation and Digital, Robert Troy said work was progressing to put virtual AGMs and general meetings on a permanent statutory footing.

He also said the extension of the measures was “prudent” the provisions be retained as a contingency measure, given the resurgence of cases.

“The Government’s most recent advice concerning attendance at work is that such attendance should only occur when it is necessary to conduct essential work that can’t be undertaken in a remote setting. In order to be compatible with this advice I have further extended the provision for undertaking meetings in a virtual format to allow companies to fulfil their statutory obligations without compromising the health of participants,” he said.

Speaking on the insolvency measures, Mr Troy said the extension of the tempoprary measures would give companies breathing space.