Independent Accountants Reports

Who Needs an Independent Accountants Report?

When the directors and board of a company have decided that Examinership may be the resolution to their company’s current trading difficulties, the first and most important step to consider when is to carry out an assessment of the of the reasonable prospect of survival of the business or any of its constituent parts as a going concern. In addition, management must consider if the creditors and other interested parties would be better off if an attempt is made to save the business, or, to follow some other insolvency course such as liquidation or receivership. 

Who Prepares and Independent Accountants Report? 

To carry out this assessment the company should engage an experienced professional to prepare an Independent Accountants Report. Except in exceptional circumstances, a petition seeking court protection for an Irish company must be accompanied by a report prepared by an independent accountant. The independent accountant is somebody who is either the auditor of the company or a person who is qualified to be appointed as an examiner of the company.

The High Court has considered the question of whether the independent accountant can subsequently become the examiner. In 2001, in Tuskar Resources plc, it was held that there was no statutory restriction on the court in appointing the independent accountant as examiner, although it was noted that there may be cases where it would be undesirable to do so.

 

Contact Us to Arragne a Meeting

For further information on how our services may assist you or your client’s business, please contact our office to arrange a meeting.

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