Dublin Opinion

Posted in EU, fuckwits | 6 Comments

6 Responses to “NO PLAN B…”

1. on 03 Aug 2012 at 12:56 pm1Scott

   Hi Conor,

   I read your book Sins of The Father and I thought it was very good, exploring historical aspects of The Irish Economy that haven’t been discussed in mainstream media. I have a question regarding companies going bust/bankrupt/liquidation etc. Is it because of Company Law/Companies Act/Limitied Liability that individuals/directors of these firms can just walk away from their unpaid debts and start again or the company starts again under new management. One recent example of this was Peats Electronics which was closed for a week or two but is now open again.
   Thanks

2. on 03 Aug 2012 at 2:44 pm2Conor McCabe

   Hi Scott, as far as I know that’s the case with limited companies - that it’s the company and not the actual owners who are liable under law. It gets complicated if the owners have put up personal guarantees for the loans etc of the limited company, but if not then they should be able to walk away and start afresh. I think it costs €250 to register a new limited company.

3. on 03 Aug 2012 at 10:17 pm3Scott

   Hey Conor,
   I was thinking that was how it worked but these debts are the future projected income of other companies. I think Limited Liability makes the company a person in law or incorporated so the debts are the companies. I think this can encourage entrepreneurs but also wreckless trading and the knock on effect on companies owed the money could lead to their demise. Also isn’t it possible that the money owed is actually available but some simply cry bankrupt, choose not to pay it and instead spend it on themselves. Any views on this?

4. on 04 Aug 2012 at 11:42 am4Conor McCabe

   not really. I think the problems facing the irish economy, and by extension Irish society, are a lot more fundamental than the use/abuse of limited liability law. That’s not to say that the issue is not important, just that I don’t see it as one of the structural problems facing Ireland today. It needs to be tackled, but it wont solve the problems we have.

5. on 05 Aug 2012 at 12:22 am5Scott

   I agree that the problems facing Ireland today are beyond limited liability but corporate welfare is rife. I know risk is fundamental to society and business but with the banks being bailed out(as companies with limited liability?) and ordinary poor folk footing the bill it looks like Ireland doesn’t punish failure particularly in the financial sector. Over the water the 2012 London Olympics are taking place at a cost of around 12 billion sterling. Ireland has a debt of 85 billion euro to the IMF. Dublin probably doesn’t have the infrastructure/facilities to host the Olympics but the cost of hosting a global event pales in comparison to the debt of Ireland. As for the other difficulties Ireland faces as an economy or society hopefully there is a collective out there that can turn things around
   S

6. on 09 Aug 2012 at 9:52 am6turkeys4xmas

   Limited liability is pretty fundamental to why appalling behaviour in business is not punished. It’s actually designed that way.
   This is linked to the concept of the company (or corporation) as a legal person, just like you or me, but one that can act with impunity. See the Corporation documentary. http://www.youtube.com/watch?v=Pin8fbdGV9Y

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