Qualification as Liquidator/Examiner

 

The Companies Act 2014 (“the Act”) commenced on 1st June 2015. Under the previous Companies Acts, there were no formal qualifications necessary for the appointment as liquidator or as an examiner. The new Companies Act however does require qualification for appointment as either liquidator and examiner. Please see information leaflet no.38 regarding qualifications and disqualifications and also Part 11 Companies Act 2014. It should be noted that the Companies Registration Office has no involvement regarding qualification. Liquidators and examiners are subject to the Act and the Supervisory Authority details are as follows:

Supervisory Authority: The Irish Auditing and Accounting Supervisory Authority

Address: Willow House, Millennium Park, Naas, County Kildare  

Ph: 045 983600         Fax: 045 983 601               Email: info@iaasa.ie         Website: www.iaasa.ie

Qualification Category
Category 1 Member of Prescribed Accountancy Body
Category 2 Practising Solicitor
Category 3 Member of Professional Body recognised by IAASA
Category 4 Person qualified under the laws of other EEA state
Category 5 Person of practical experience

Liquidations initiated prior to Companies Act 2014 

A liquidator (including a provisional liquidator) can continue to act, in a winding up where the appointment was made prior to the Companies Act 2014’s commencement. (i.e The Act does not affect the appointment of liquidator in any case which was started prior to the new Act).

If a liquidator is applying to act as a liquidator to a company under category 5 (Person of Practical experience), the liquidator can continue to act as liquidator to a company where the appointment was made prior to the introduction of the new Act, even where that application has been refused. (i.e. the new Act does not affect the appointment of a liquidator in any case which was started prior to the new Act).

Category 1 - Member of a prescribed accountancy body

The person is a member of a prescribed accountancy body, being a person who –

  •  holds a current practising certificate issued by that body; and
  •  is not prohibited by virtue of rules of that body or a direction, ruling or decision of that body, or any disciplinary or professional practice committee of it, from acting as a liquidator. 

Category 2 - Practising solicitor

The person is a solicitor, being a solicitor who –

  • holds a current practising certificate issued by the Law Society of Ireland under the Solicitors Acts 1954 to 2002; and
  • is not prohibited by virtue of regulations made by the Law Society of Ireland, or a decision or order made

Category 3 - Member of other professional body recognised by IAASA

The person is a member of such professional body as the IAASA may from time to time recognise for the purposes of this section, being a person who –

  • is authorised for the time being by that professional body to pursue the particular activities that that body aims to promote or foster or as respects the pursuit of which by its members that body
  • has been established to represent ; and
  • is not prohibited by virtue of rules of that body or a direction, ruling or decision of that body, or any disciplinary or professional practice committee of it, from  acting as a liquidator.

Category 4 - Person qualified under the laws of other EEA State

The person is entitled under the laws of an EEA state, (other than Ireland), to act as a liquidator in insolvency proceedings and the qualifications held by, or the circumstances otherwise relating to the person, that entitle him or her so to act are ones that by virtue of any Community act, entitle him or her to act as a liquidator in the State.

Category 5 - Persons with practical experience of windings up and knowledge of relevant law

The person -

  • having made application in that behalf to the IAASA in the prescribed form within 2 years after the commencement of this section; and
  • paid the prescribed fee and stands authorised for the time being by the Supervisory Authority to be so appointed, such authorisation having been granted on the grounds that each of the following is satisfied:

(i) the person has, prior to the commencement of this section, obtained adequate relevant experience of the winding up of companies and knowledge of the law applicable thereto by virtue of the person’s either -

            1. having been–

(A) employed in relevant work by a person who at the relevant time fell (or, if this section had been in operation at that time, who would have fallen) within categories 1, 2 or 3; or

(B) engaged on his or her own account in relevant work; or

2. having practised in an EEA State (not being the State) as a liquidator;

(ii) the person is, in the opinion of IAASA, after consultation with the ODCE, a fit and proper person to act as a liquidator; and

(iii) the person does not fall within categories 1, 2, 3 or 4.

Specific disqualification from appointment as liquidator or provisional liquidator.

None of the following persons shall be qualified to be appointed or act as liquidator of a company -
(a) a person who is, or who within the period of 24 months before the date of the commencement of the winding up has been, an officer or employee of the company;
(b) except with the leave of the court, a parent, spouse, civil partner, brother, sister or child of an officer of the company;
(c) a person who is a partner or in the employment of an officer or employee of the company;
(d) a person who is an undischarged bankrupt;
(e) a person who is not qualified by virtue of a preceding provision of this subsection for appointment as liquidator of any other body corporate which is that company’s subsidiary or holding company or a subsidiary of that company’s holding company, or would be so disqualified if the body corporate were a company.

An application for leave under (b) shall be supported by such evidence as the court may require. (Section 635 Companies Act 2014). If, while acting as liquidator of a company, a person ceases to be qualified to so act, the person shall vacate his or her office.

An auditor of a company cannot also be the liquidator to the company. References to (a) to (e) under section 635 Companies Act 2014, includes – reference to a child of an officer of the company shall be deemed to include a child of the officer’s civil partner where the child is ordinarily resident with the officer and the civil partner. An officer or employee of the company includes a statutory auditor of the company.