Companies Act 2014 section 558S

Procedure where process adviser unable to prepare rescue plan

Section 558S sets out the steps a process adviser must follow when unable to prepare a rescue plan for an eligible small or micro company, including reporting obligations and the potential consequences if directors ignore a recommendation to wind up.

• Where a process adviser cannot prepare a rescue plan, they must promptly prepare a report explaining why and recommending next steps, which may include winding up the company.
• A copy of the report must be given to the directors, and notice must be sent to employees, members, creditors and the Revenue Commissioners.
• The process adviser's recommendations are not binding on the company or its directors — they remain free to decide their own course of action.
• However, if the process adviser recommends winding up and the directors choose instead to continue trading, and the company is then wound up within six months, the court may take that decision into account in any application under section 610 (restriction of directors).

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