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Insolvency

SMDF: Questions for the Law Society

Will the Society release to the public the legal advice it has received relating to its proposal to bailout the SMDF?

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Can’t pay; won’t pay

n short, to repeat, currently the Law Society of Ireland has no power to lawfully compel the payment of the levy to make up the SMDF insolvency shortfall.

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Fundamental Laws

Sean Fitzpatrick’s business model for Anglo Irish Bank plc (when it was revealed to the public) had a familiar ring about it.

It expressed a belief in a perpetual motion device.

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Appearances

Here in Ireland, if there were to be a reprise of that struggle we can not be sure that the courts’ response might not be equally inadequate.

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Creditors’ Meetings

At McGarr Solicitors we will advise on the questions to be asked by creditors at the meeting and will attend to represent the interests of creditors if asked to do so.

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Safekeeping

It is common in building agreements for the “employer” to hold back some monies due to the builder/contractor under the contract. This money is known as “retention money”.

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Insolvent employers

It is a source of additional worry (above the prospect of unemployment) to employees who have been injured at work, to find that their employer is insolvent.

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The Lengthening Anglo Irish Bank Road

Under the Market Abuse (2003/6/EC) Regulations 2005 it is an offence to breach the regulations by engaging in the acts set out in Regulation 5

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The Short/Long Anglo Irish Bank Road

“…any person was knowingly a party to the carrying on of any business of the company with intent to defraud creditors of the company, or creditors of any other-person or for any fraudulent purpose;”

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The Long Anglo Irish Road

The Anglo Irish Bank “shareholders” are all “former shareholders”; the shares of the Bank have been transferred to the Minister. Logically, no rights to issue proceedings by former shareholders against proposed Defendants can arise from the expropriation of the shares by the Minister for Finance, but it would be foolhardy to sue without first writing to the Minister and obtaining his consent to issue proceedings, seeking civil remedies.

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