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GAZETTE
SEPTEMBER 1981
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
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.
177