The Corporate Enforcement Agency has published an Information Note on the topic of Early Warning Tools and Restructuring Frameworks.
The purpose of the document is to provide assistance to company directors in understanding certain aspects of the European Union (Preventive Restructuring) Regulations 2022.
EU Directive 2019/1023, known as the Preventive Restructuring Directive (“the PRD”), was transposed into Irish law by the European Union (Preventive Restructuring) Regulations 2022 (“the Regulations”) with effect from 27 July 2022. The regulations are primarily concerned with companies that are in financial difficulties.
Specifically, the Information Note has been prepared with a view to assisting company directors to understand:
- the importance of maintaining adequate accounting records,
- what is meant by a company being in financial difficulty, being unable to pay its debts and being insolvent respectively,
- specific aspects of company directors’ duties where a company is in financial difficulty, and
- the potential consequences of non-compliance with company directors’ duties.
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