Cian agree with you and feel sorry for you, but your unions are failing you by protecting thoes like Carduff.

If companies liquidate to get out of paying creditors and reopen under a new company they still need to be supplied. It’s not a simple as you suggest. Directors are getting smarter. Instead of putting all eggs in one basket they are spreading risk. Retailers are opening one company per shop to force every location to stand on its own feet. The type of prudence that would have forced rental issued with landlords if it was previously practiced.

If you close a company when it’s insolvent you can’t open a new company for 6 years, what you suggest is pure crap from someone who has never been a director of a company and knows little of corporate law

Jay, don’t be making up company law. A company can be insolvent for many reasons. Restrictions are only pit on directors who are found guilty of reckless trading. There is no 6 year rule. It’s all case specific and there are very few disqualifications in Ireland. Restrictions may mean placing a bond down that offers some degree of guarantee to future creditors… but that’s only if you traded recklessly. The say majority of company wind ups due to insolvency are due to insolvency.. which means they are no longer viable.

If a company goes into liquidation the directors are barred from being directors of any other company for six years. AS for retailers…cormac are you talking about franchising? The six year rule still applies for directors positions but the director can be an employee of the company.

Niamh… http://WWW.cro.ie You’ll find that I am correct. yourself and Jay above are confusing bankruptcy with company insolvency

So what is the difference between them and what bracket do recievership and liquidation fall into?

Cormac from director of corporate enforcement below,

Any director is liable to be restricted from being a director of certain companies for five years if he has been a director of a company within twelve months prior to the commencement of winding up of the company and the insolvent company being placed in liquidation.

Jay, yes of course a director is liable for their conduct. Insolvency is not against the law. Trading recklessly is against the law. A liquidator must present their findings to the CRO, this includes the conduct of the directors. In some cases the liquidator will state that they wish to take a case against the directors and in some cases the CRO will instruct the liquidator to take a case against them. In most circumstances they dont because the directors did nothing wrong. The result of a case taken against a director can include a barring or for lower offenses, a restriction. A restriction means you have to put a bond in place or capitalize a company or companies by a sum of money for a period of up to 5 years. It can anything between 1 to 5 years. Very few company directors get barred. The only cases I ever saw on the CRO site was for directorate who just walk away and leave the country don’t bother to liquidate.

Niamh… bankruptcy is applied for to the courts by private individuals, not companies. It’s actually very harsh in Ireland and Enda Kenny has stated that the gov are looking at amending the procedure.

I just wish you would stop generalising , I am an ex soldier my pension does not cover my outgoings and I have eaten into my savings, my next step is cutting down use of electricity and oil, have already cancelled life insurance, pet insurance and I am in the lucky bracket… So f*** you and your fat pensions.

The loans as you call them were leant or given credit by other companies. Eg if a restaurant goes into liquidation it will owe money to food suppliers cleaning companies staff revenue landlord esb rates to council etc

And maybe also some banks

In the end this all effects the average person through higher prices as companies will soon start trying to re coop their losses once they have burned through their war chest. In every recession just before a depression prices rise.

Starts with semi state companies rising prices to re coop losses as they normally run monopolies can increase prices at will, this puts more companies out of business, next multinationals raise prices as they see more risk of not been paid and have to cover the risk, so more companies go under, then large Irish firms follow the multinationals as they are even more exposed to the risk, this goes through the whole cycle of companies right down to the sole trader. It’s called a depression, ask yourself have you noticed semi state and large multinationals raising the prices?

Most new start-ups employee 1 or 2 many of the companies that closed employed 100′s and most would of employed over 10.

It does sound bad, but it’s too easy when Business’s go into liquidation and walking in the back door to buy the very same back under a family member’s name..