Companies Act 2014 section 509

Power of court to appoint examiner

Section 509 sets out the circumstances in which a court may appoint an examiner to a company that is, or is likely to become, insolvent, including the conditions that must be met, the meaning of inability to pay debts, jurisdictional rules for different sized companies, and the role of NAMA where relevant.

• The court may appoint an examiner where a company is or is likely to be unable to pay its debts, provided no winding-up resolution or order is in place and there is a reasonable prospect of survival as a going concern.
• A company is unable to pay its debts if it cannot pay them as they fall due, if its assets are worth less than its liabilities (including contingent and prospective liabilities), or if it meets statutory insolvency tests under section 570.
• Small companies (meeting two of: no more than 50 employees, balance sheet total not exceeding €4.4 million, turnover not exceeding €8.8 million) may petition the Circuit Court rather than the High Court, reducing costs and improving accessibility.
• Where the company has obligations relating to assets transferred to NAMA, the court cannot appoint an examiner unless NAMA has been served with the petition and given the opportunity to be heard.