The Gazette 1981

SEPTEMBER 1981

GAZETTE

Election of Young Solicitors to Council? There are many problems facing y o u ng solicitors to-day not least of which are (a) Low Salaries, after several years of study and in many cases working apprenticeships, and (b) frustrating working conditions. Many people have complained that the Council of the Incorporated Law Society of Ireland is removed from the problems facing y o u ng solicitors. S ome have suggested that the Society of Yo ung Solicitors ought to tackle the problems of y o ung solicitors. Howe v e r, the Law Society cannot do this as it does not claim to represent the views of y o u ng solicitors, nor does it have any mandate from them. Notwithstanding that the Law Society has the best interests of y o ung solicitors at heart and s h ows this by providing lectures and a forum for discussions on recent developments in the law, the Society's role has been in the field of legal education only, and the Society has not for a long while been involved in promoting other matters of concern to y o ung solicitors, in particular, the areas of remuneration and conditions of work. The Law Society on the other hand may be said to represent the voice of the profession as a whole. It d o cs claim to have the interests of the whole profession at heart. However, it may be said that the Council, being the democratically elected body of the Society does not, as presently elected, adequately represent the views of young solicitors but this may very well be because y o ung solicitors themselves d o not seek election. The Council elections take place in No v emb er and it is the view of the Commi t t ee of the Society of Yo u ng Solicitors that the Council should be made to reflect adequately the interests and concerns of the y o ung solicitors. Howe v e r, it it up to y o u, the y o ung members of the profession, to seek adequate representation for your interests on the Council by supporting candidates wh o will be your s pok e smen or s p o k e s women on the Council. Officers and Committee Officers and Commi t t ee of The Society of Yo ung Solicitors for the year 1 9 8 1 / 8 2: Chairman: T om O ' Co nn o r; Treasurer: John Lynch; Secretary: Pelria McDonn e l l. Commi t t e e: Marcus Beresford, John Bourke. Claire Callanan, Paul Clune, Carol Fawsitt, Michael G . Ha y e s, Phil McCa r t h y, Peter Morrissey, Ow en O'Connell, Donal O ' Ha g a n, No rman Spendlove, William White. Continuing Legal Education NOTICES: 1. Autumn 1981 Programmes for Solicitors qualified 2 years or less is now available. 2. The 1982 Programme: Details in Next Issue. 3. Wills and Taxation Planning (Messrs. Robert Johnstone, Solicitor, John O'Connor, Solicitor and Colin Chapman, Solicitor.) Tralee, 28 Nov. 1981 with Kerry Law Society. Fee £25.00. Apply to Prof. L. G. Sweeney. Inc. Law Society, Blackhall Place, Dublin 7. Telephone 710711.

5 2. Spelman, Brian, P., Roselawn Avenue, Castleknock, Dublin. 5 3. T i mmo ns Kiely, Mary, 27 Tara Court, Letterkenny, C o . Donegal. 5 4. Torsney, Gerard F., 27 Cou l s on Avenue, Rathgar, Dublin. 5 5. Walsh, Elizabeth C., Carriglea, Bandon, Co. Cork. Companies: Lifting the Veil? (continued from p. 153) knowledge that it is, under its fixed charge, going to have a first claim on the most saleable assets of the Comp a ny in the event of a collapse, it is not u n c ommon for such lending institutions to display a cavalier attitude to the financial position of the C omp a ny until the crisis arises. In contrast in European Countries where the doctrine of the floating charge d o es not exist Lending Institutions on advancing credit to trading c omp a n i es frequently seek a share in the Comp a n y 's equity and demand the right to appoint a Director to the Board. In this way the Lender is privy to the C omp a n y 's trading position at all times and is in a position to suggest or require remedial action at a time when such action can usefully be taken. The situation arising subsequent to the appointment of a receiver has attracted further criticism. Such a receiver holds an a n oma l o us position in that he is primarily answerable only to his Appointer. His presence on the C omp a n y 's premises and his taking control of the assets and affairs of the C omp a ny usually results in the directors of the C omp a ny finding themselves wholly at the mercy of the Receiver as far as access to the c omp a n ys premises and records is concerned even though their obligations in respect of the C omp a ny under the Comp a n i es Ac ts are not diminished to any great extent by the appointment of the Receiver. The position of the ordinary trade creditors in a receivership is a most unhappy one. The Debenture Holder will normally have a fixed charge over the C omp a n y 's property giving it first priority on any sale of the c omp a n i es assets and it is c ommon to find substantial "Super-preferred" and "Preferred Creditors" P . R . S . I. V . A . T. and other Revenue Claims and wa g es in for substantial amounts while receivers fees are not noted for their modesty. In such situations the position of the ordinary creditor is usually disastrous. S o great is the benefit conferred by incorporating a trader that it would not be at all unreasonable for mu ch more stringent requirements to be imposed. There ought to be an obligation on the promotor of a new c omp a ny to subscribe a fixed capital sum of not less than £ 1 0 , 0 0 0. Ideally s ome provision ought to be made for the maintenance of such capital during the life of the C omp a n y, but it has to be admitted that the realisation of such a name presents considerable practical difficulties. There is an o b v i o us need to improve the system for inquiring into the manner in which the affairs of failed c omp a n i es have been carried on by their directors. At present, if the failed C omp a n y 's assets are too small to fund a liquidator's expenses, any inquiry must be financed by the unfortunate creditors. Consideration should be given to the establishment of an Official Receiver on the U . K . model, wh o would be available to act as a liquidator of wholly and solvent Comp a n i es and thus enable enquiries into the c ondu ct of their affairs to be ma d e .D

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