The Government has approved an extension of two measures taken under companies legislation to address issues that arose as a result of COVID-19 restrictions.

The interim period of the two measures of the Companies (Miscellaneous Provisions) (Covid-19) Act 2020 has been further extended to 31 December 2023.

The act makes temporary amendments to the Companies Act 2014 and the Industrial and Provident Societies Act 1893.

‘Breathing space’

It makes temporary provision for increasing the threshold at which a company is deemed unable to pay its debts to €50,000.

The act also allows 240,000 companies, and 950 industrial and provident societies, to hold their annual general meetings (AGMs) and general meetings by electronic means.

The Department of Enterprise, Trade and Employment says that the continuation of these amendments will provide “additional breathing space and continuity for businesses” to the end of 2023.

Viable companies

Dara Calleary (Minister for Trade Promotion, Company Regulation and Digital, pictured) said that the higher debt threshold would ensure that fundamentally viable companies would not be wound up for relatively small debts of €10,000.

“Retaining virtual general meetings will allow companies and co-operatives to continue to comply with their legal obligations in what is a challenging trading environment and to allow members to hold the directors accountable,” he added.

The minister said that other temporary measures – those that provided for an extended examinership period, and the remote execution of documents – were not being extended into 2023.