In an article ('Liquidation figures fuel the hunt for alternatives') in the Sunday Morning Post Money section, on July 28, the writer suggests that the Law Reform Commission 'has so far not opted to implement anything definite' in respect of a new scheme for voluntary administration.
The commission may not have publicly announced its final views, but it has not been idle as the comment might seem to suggest. The commission's insolvency sub-committee began work on formulating proposals for a corporate rescue regime back in May 1993, having identified a need which would become more pressing were the economy to take a downturn. The sub-committee's initial proposals were issued for public consultation in July 1995. In the light of much detailed comment which was received, the sub-committee passed its final report to the commission in January 1996.
The commission has now all but completed its final report, which I expect to be published in October. It is fair to say that while some changes have been made to the proposals initially put forward by the sub-committee in last year's consultation paper, the central recommendation that legislative provision should be made for a new corporate rescue mechanism has never been in doubt.
Far from not yet having opted to implement anything definite the commission has reached a conclusion on all the issues raised for discussion and will be publishing its final recommendation on corporate rescue in the next two to three months.
STUART M.I. STOKER Secretary Law Reform Commission