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ARTICLE · 15 JULY 2024

Important Changes To Reckless Trading Test

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Certain amendments to the reckless trading provisions of section 610 of the Companies Act 2014 contained in the Employment...

IrelandCorporate/Commercial Law
Brendan Colgan
Brendan Colgan
Kevin Gahan
Kevin Gahan
Julie Murphy-O'Connor
Julie Murphy-O'Connor
Tony O'Grady
Tony O'Grady
Róisín Peart
Róisín Peart
Tina Turner
Tina Turner
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Certain amendments to the reckless trading provisions of section 610 of the Companies Act 2014 contained in the  Employment (Collective Redundancies and Miscellaneous Provisions) and Companies (Amendment) Act 2024Opens in new window (the “Act”) came into force on 1 July 2024 (pursuant to S.I. 303 of 2024).

As detailed in our previous coverage of the Act  here, a number of the amendments, including the removal of the requirement that reckless trading is required to be perpetrated “knowingly”, are intended to tidy up the existing language or render it more precise. However, the principal substantive change is the replacement of the potential defence of establishing that the relevant officer acted “honestly and responsibly” (section 610(8)) with an entirely new potential defence.

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