Committee calls for ‘examinership-lite’ option for small businesses
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The law on examinership should be amended to introduce an “examinership-lite” option for small businesses struggling in the aftermath of the COVID-19 pandemic, an Oireachtas committee has said.
The proposal is one of 19 recommendations made by the Oireachtas special committee on COVID-19 response in its Stimulating Enterprise and the Economy report, published on Friday.
The issue of examinership and particularly the cost of entering examinership in Ireland “was a recurring theme in evidence received by the committee”, the report states.
In evidence to the committee, SME Recovery Ireland (SMERI) pointed out that the UK government is “rushing through a new bill on corporate insolvency to ensure that the balance of power between large banks and large landlords, on the one hand, and smaller firms, on the other, is in a different place”.
The committee report recommends that the law be changed in autumn 2020 to support “struggling small businesses who are currently precluded due to the currently high costs involved”.
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