Companies (Amendment) Act, 1990

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Petition for protection of the court.

3.—(1) Subject to subsection (2), a petition under section 2 may be presented by—

(a) the company, or

(b) the directors of the company, or

(c) a creditor, or contingent or prospective creditor (including an employee), of the company, or

(d) members of the company holding at the date of the presentation of a petition under that section not less than one-tenth of such of the paid-up capital of the company as carries at that date the right of voting at general meetings of the company,

or by all or any of those parties, together or separately.

(2) (a) Where the company referred to in section 2 is an insurer, a petition under that section may be presented only by the Minister, and subsection (1) of this section shall not apply to the company.

(b) Where the company referred to in section 2 is the holder of a licence under section 9 of the Central Bank Act, 1971 , or any other company supervised by the Central Bank under any enactment, a petition under section 2 may be presented only by the Central Bank, and subsection (1) of this section shall not apply to the company.

(3) A petition presented under section 2 shall—

(a) nominate a person to be appointed as examiner, and

(b) be supported by such evidence as the court may require for the purpose of showing that the petitioner has good reason for requiring the appointment of an examiner, and

(c) where the petition is presented by any person or persons referred to in subsection (1) (a) or (b), include a statement of the assets and liabilities of the company (in so far as they are known to them) as they stand on a date not earlier than 7 days before the presentation of the petition.

(4) A petition presented under section 2 shall be accompanied—

(a) by a consent signed by the person nominated to be examiner, and

(b) if proposals for a compromise or scheme of arrangement in relation to the company's affairs have been prepared for submission to interested parties for their approval, by a copy of the proposals.

(5) The court shall not give a hearing to a petition under section 2 presented by a contingent or prospective creditor until such security for costs has been given as the court thinks reasonable, and until a prima facie case for the protection of the court has been established to the satisfaction of the court.

(6) The court shall not give a hearing to a petition under section 2 if a receiver stands appointed to the company the subject of the petition and such receiver has stood so appointed for a continuous period of at least 14 days prior to the presentation of the petition.

(7) On hearing a petition under this section, the court may dismiss it, or adjourn the hearing conditionally or unconditionally, or make any interim order, or any other order it thinks fit.

(8) Without prejudice to the generality of subsection (7), an interim order under that subsection may restrict the exercise of any powers of the directors or of the company (whether by reference to the consent of the court or otherwise).

(9) (a) Where it appears to the court that the total liabilities of the company (taking into account its contingent and prospective liabilities) do not exceed £250,000, the court may, after making such interim or other orders as it thinks fit, order that the matter be remitted to the judge of the Circuit Court in whose circuit the company has its registered office or principal place of business.

(b) Where an order is made by the court under this subsection the Circuit Court shall have full jurisdiction to exercise all the powers of the court conferred by this Act in relation to the company and every reference to the court in this Act shall be construed accordingly.

(c) Where, in any proceedings under this Act which have been remitted to the Circuit Court by virtue of this subsection, it appears to the Circuit Court that the total liabilities of the company exceed £250,000, it shall make, after making such interim orders as it thinks fit, an order transferring the matter to the court.