ISME is delighted to welcome the second stage debate today (2nd July) on the Companies (Rescue Process for Small and Micro Companies) Bill 2021.
When the lockdown measures to combat the Covid-19 pandemic were introduced last year, ISME warned that the consequences for tens of thousands of small businesses would be dire. In April 2020, we wrote to the Minister for Enterprise seeking the urgent introduction of an affordable insolvency resolution mechanism for small businesses.
The Department of Enterprise Trade and Employment immediately referred the issue to the Company Law Review Group, which, after intense work on the issue last autumn, reverted to the Department with proposals. The Department issued a public consultation, and then worked extremely quickly to publish the very comprehensive amendment to the Companies Act which is before the Dáil today. This was only possible because of a great deal of work by the staff of the Department of Enterprise.
Neil McDonnell, CEO of ISME said: “We are aware that the Department is committed to an ambitious legislative timetable with this bill, pushing for enactment by the summer recess and commencement by the autumn. Regrettably for many small businesses, we will need to stick closely to this schedule if we are to save many of the small firms that are insolvent as the economy slowly reopens. The National Council of ISME extends its thanks to the Tánaiste and to Minister of State Troy for moving this bill so quickly to date, and we wish them every success in progressing it to early enactment.”