Receivers in Ireland - Unregulated and Unqualified

**C. Flower** · 04-06-2011, 12:16 PM

George Lee's business programme on RTE had an item of Receivers - the persons who take possession of insolvent businesses on behalf of creditors and wind them up.

It emerged that anyone in Ireland can act as a Receiver, provided they haven't been bankrupted. No particular qualifications are required. Some are accountants and solicitors, who have plenty of experience in extracting fees in a less than transparent fashion. The costs of receivership are paid out of the assets of the insolvent business.

There are no controls on fees. The spokesperson on Lee's show said that competition would keep fees down. LOL.

A woman who had been subject to the process told her story - two men had come up behind her in her place of business, without any warning, demanded the keys and told her to issue P45s to her staff immediately, effing and blinding in the process. They were accompanied by security men. At the same time, she was phoned and told that there were similar people at her home.

The Receiver estimated that there are at least 150,000 businesses in Ireland at the point of insolvency. It's an ill wind blows nobody any good.

We are living in an economy that is effectively being liquidated, from the banks, to small local businesses. It would be very ill advised to think that there is any logical plan behind this that involves "recovery" - it is just "the hidden hand" of the market in operation, with the assistance of its attendant vultures.

**antiestablishmentarian** · 04-06-2011, 12:22 PM

The same goes for examiners, there are no legal barriers on who can become one. As for receivers, the only way to remove them is to seek court protection within three days of appointment or take an action for them to be struck off on grounds of unsuitability or failure to carry out duties etc.

**wickedfairy** · 04-06-2011, 12:35 PM

we have lost a garage and a Centra within the last couple of months. Centra went on Wednesday, no warning, no notices, people are aghast, standing outside the shop in disbelief. Someone said the owner had about five Centras.The shop was rocking, always busy with a great off licence. Anyone without a car has to walk miles now. Devastating stuff. I am so upset.

**Griska** · 04-06-2011, 12:38 PM

Originally Posted by wickedfairy

we have lost a garage and a Centra within the last couple of months. Centra went on Wednesday, no warning, no notices, people are aghast, standing outside the shop in disbelief. Someone said the owner had about five Centras.The shop was rocking, always busy with a great off licence. Anyone without a car has to walk miles now. Devastating stuff. I am so upset.

The Walmartisation of Ireland.

**wickedfairy** · 04-06-2011, 01:03 PM

you mean the Tescofication Griska.

**Captain Con O'Sullivan** · 04-06-2011, 06:17 PM

Originally Posted by wickedfairy

we have lost a garage and a Centra within the last couple of months. Centra went on Wednesday, no warning, no notices, people are aghast, standing outside the shop in disbelief. Someone said the owner had about five Centras.The shop was rocking, always busy with a great off licence. Anyone without a car has to walk miles now. Devastating stuff. I am so upset.

Might be an opportunity there too Wickd Fairy. Is there demand for a small co-op there then?

Could a few people not get together and run a small co-op provding bare essentials?

**wickedfairy** · 04-06-2011, 07:48 PM

an idea worth thinking about Captain

**TotalMayhem** · 04-06-2011, 08:42 PM

Originally Posted by wickedfairy

an idea worth thinking about Captain

Think about the rates, shop lease or insurance... and forget it.

**ang** · 04-06-2011, 04:08 PM

It seems to me nothing is regulated in Ireland apart from the Irish Citizen who pays for it all.

**Rich** · 04-06-2011, 04:33 PM

Those of you who know what I do will know that I have a vested interest in this area (just wanted to be clear).

The situations as they have been laid out pretty much accurately lay out the situation as it exists. The worst thing is that this is actually a minefield of an area if it is not done right - both for the person/business who is requiring the service and the person/firm providing the service. In the current economic climate there will be 10's if not 100's of thousands of these events over the next couple of years which, if not handled properly will come back to haunt long after they think the matter is sorted.

My advice to anybody who thinks that they are going to end up in receivership/liquidation is to make certain that the person you are getting to do the job has done it lots of times before. Yes they will cost more than the local accountant up the road who is willing to give it a go, but the fact that they will do it right is much better than the couple of thousand that you might save.

**C. Flower** · 04-06-2011, 04:50 PM

Originally Posted by Rich

Those of you who know what I do will know that I have a vested interest in this area (just wanted to be clear).

The situations as they have been laid out pretty much accurately lay out the situation as it exists. The worst thing is that this is actually a minefield of an area if it is not done right - both for the person/business who is requiring the service and the person/firm providing the service. In the current economic climate there will be 10's if not 100's of thousands of these events over the next couple of years which, if not handled properly will come back to haunt long after they think the matter is sorted.

My advice to anybody who thinks that they are going to end up in receivership/liquidation is to make certain that the person you are getting to do the job has done it lots of times before. Yes they will cost more than the local accountant up the road who is willing to give it a go, but the fact that they will do it right is much better than the couple of thousand that you might save.

Thanks. But the impression I have is that the Receiver is appointed by the creditor and that the firm being wound up has no choice in the matter.
Also, if a small firm is insolvent it is quite likely that the owner/s have to funds with which to pay for expert advice.

Is that not the case ?

**Rich** · 04-06-2011, 06:12 PM

Originally Posted by C. Flower

Thanks. But the impression I have is that the Receiver is appointed by the creditor and that the firm being wound up has no choice in the matter.
Also, if a small firm is insolvent it is quite likely that the owner/s have to funds with which to pay for expert advice.

Is that not the case ?

Hi Cactus

I am talking about of insolvency in general. That said most of the time the company will arrive with a 'professional insolvency practitioner' at the Creditors meeting and the creditors will approve the appointment.