LegalizeReform history
Microenterprise Loan Fund Act 2012
2 versions
· 2012-07-24
2024-08-28
IE-2012-act-31 — consolidated version 2024-08-28
Changes on 2024-08-28
@@ -1,14 +1,12 @@
# Microenterprise Loan Fund Act 2012
## PART 1 Preliminary and General
##### 1. Short title and commencement.
##### 1.. **Short title and commencement.**
**1**.— (1) This Act may be cited as the Microenterprise Loan Fund Act 2012.
(2) This Act shall come into operation on such day or days as the Minister may appoint by order or orders either generally or with reference to any particular purpose or provision and different days may be so appointed for different purposes or different provisions.
##### 2. Interpretation.
##### 2.. **Interpretation.**
**2**.— (1) In this Act—
@@ -22,13 +20,19 @@
“Minister” means the Minister for Jobs, Enterprise and Innovation;
“Social Finance Foundation” means the company of that nameformed and registered under the Companies Acts on 25 January 2007;
F1["promotional financial institution" means—
(a) the Strategic Banking Corporation of Ireland, or
(b) any other national promotional bank or institution, other than the Social Finance Foundation, within the meaning of Regulation (EU) 2015/1017 of the European Parliament and of the Council of 25 June 2015 on the European Fund for Strategic Investments, the European Investment Advisory Hub and the European Investment Project Portal and amending Regulations (EU) No. 1291/2013 and (EU) No. 1316/2013 - the European Fund for Strategic Investments;^1
“Social Finance Foundation” means the company of that name formed and registered under the Companies Acts on 25 January 2007;
“subsidiary” has the meaning assigned to it by *section 11*.
(2) For the purposes of this Act, a person is a microenterprise if—
(*a*) the person is established in the State and employs fewer than 10 persons (calculated in accordance with Commission Recommendation (2003/361/EC) of 6 May 2003 [^1] concerning the definition of micro, small and medium-sized enterprises) whether or not in the State, and
(*a*) the person is established in the State and employs fewer than 10 persons (calculated in accordance with Commission Recommendation (2003/361/EC) of 6 May 2003 ^1 concerning the definition of micro, small and medium-sized enterprises) whether or not in the State, and
(*b*) the person’s—
@@ -38,13 +42,13 @@
(iii) annual balance sheet total does not exceed €2 million (calculated in accordance with the said Commission Recommendation).
##### 3. Expenses.
##### 3.. **Expenses.**
**3**.— The expenses incurred by the Minister in the administration of this Act shall, to such extent as may be sanctioned by the Minister for Public Expenditure and Reform, be paid out of moneys provided by the Oireachtas.
## PART 2 Microenterprise Loan Fund
##### 4. Microenterprise Loan Fund.
##### 4.. **Microenterprise Loan Fund.**
**4**.— (1) All grants made to the subsidiary under *section 5* and all gift and other income shall be known collectively as the Microenterprise Loan Fund and in this Act are referred to as the “Fund”.
@@ -70,15 +74,15 @@
(*g*) the proceeds of the sale or other disposal of any land or other property paid to the subsidiary in accordance with *subsection (6)* of *section 9*.
##### 5. Grants to subsidiary.
##### 5.. **Grants to subsidiary.**
**5**.— (1) The Minister shall make a grant of €10 million to the subsidiary out of moneys provided by the Oireachtas.
(2) The Minister may, in addition to the grant made in accordance with *subsection (1)*, make such grant or grants to the subsidiary out of moneys provided by the Oireachtas as he or she considers appropriate provided that the aggregate of all grants made to the subsidiary in accordance with this subsection shall not exceed €15 million.
(2) The Minister may, in addition to the grant made in accordance with *subsection (1)*, make such grant or grants to the subsidiary out of moneys provided by the Oireachtas as he or she considers appropriate provided that the aggregate of all grants made to the subsidiary in accordance with this subsection shall not exceed F2[€95 million].
(3) For the avoidance of doubt, the subsidiary shall not be liable to repay to the Minister any moneys paid to it under this section.
##### 6. Investment of moneys standing to credit of Fund.
##### 6.. **Investment of moneys standing to credit of Fund.**
**6**.— (1) Moneys standing to the credit of the Fund that are not, for the time being, required for the purpose of lending money to microenterprises in accordance with *section 7* or the making of payments in accordance with *section 19* may be invested by the subsidiary—
@@ -94,17 +98,25 @@
(4) In this section “credit institution” has the same meaning as it has in the Central Bank and Credit Institutions (Resolution) Act 2011.
##### 7. Lending to microenterprises.
##### 7.. **Lending to microenterprises.**
**7**.— (1) The subsidiary may lend money to microenterprises in accordance with a scheme under *section 10* out of moneys—
(*a*) for the time being standing to the credit of the Fund, or
(*b*) loaned to it by the Social Finance Foundation in accordance with *subsection (4)* of *section 8*.
(2) Where moneys (other than moneys standing to the credit of the Fund) for the time being standing to the credit of accounts held by the subsidiary are, by reason of a default or defaults in the payment of moneys due to the subsidiary pursuant to an agreement or agreements providing for the making of a loan or loans to which *subsection (1)* applies, insufficient to enable the subsidiary to pay (in whole or in part) to the Social Finance Foundation any sum the payment of which falls due in accordance with terms or conditions referred to in *subsection (4)* of *section 8*, the subsidiary shall pay that sum to the Social Finance Foundation out of moneys for the time being standing to the credit of the Fund.
##### 8. Borrowing by Social Finance Foundation.
(*a*) for the time being standing to the credit of F3[the Fund,]
(*b*) loaned to it by the Social Finance Foundation in accordance with subsection (4) of F3[the Fund,]
F4[(*c*) loaned to it by a promotional financial institution in accordance with*subsection (1)*of*section 8A*.]
F5[(2) Where moneys (other than moneys standing to the credit of the Fund) for the time being standing to the credit of accounts held by the subsidiary are, by reason of a default or defaults in the payment of moneys due to the subsidiary pursuant to an agreement or agreements providing for the making of a loan or loans to which*subsection (1)*applies, insufficient to enable the subsidiary to pay (in whole or in part) to—
(*a*) the Social Finance Foundation, any sum the payment of which falls due in accordance with terms or conditions referred to in*subsection (4)*of*section 8*, or
(*b*) a promotional financial institution, any sum the payment of which falls due in accordance with terms or conditions referred to in*subsection (1)*of*section 8A*,
the subsidiary shall pay the sum due to the Social Finance Foundation or the promotional financial institution concerned, as the case may be, out of moneys for the time being standing to the credit of the Fund.]
##### 8.. **Borrowing by Social Finance Foundation.**
**8**.— (1) The Social Finance Foundation may, for the purposes of this Act and with the consent of the Minister, the Minister for Finance and the Minister for Public Expenditure and Reform, borrow money (including money in a currency other than the currency of the State) from such persons as it considers appropriate, whether by means of the issue of debentures (or other debt security) or otherwise.
@@ -112,15 +124,29 @@
(3) For the purposes of this section, moneys borrowed in a currency other than the currency of the State shall be deemed to be the equivalent in the currency of the State of the actual moneys borrowed, such equivalent being calculated at the rate of exchange prevailing at the time of the borrowing for that currency and the currency of the State.
(4) (*a*) The Social Finance Foundation shall, subject to such terms and conditions as the Minister determines, lend to the subsidiary all moneys borrowed by it in accordance with this section.
(4) (*a*) The Social Finance Foundation shall, F6[subject to*subsection (2)*of*section 8A*and such terms and conditions] as the Minister determines, lend to the subsidiary all moneys borrowed by it in accordance with this section.
(*b*) The Social Finance Foundation shall not lend moneys to the subsidiary other than moneys borrowed by it in accordance with this section.
(*c*) The subsidiary shall not borrow moneys from any person other than moneys loaned to it in accordance with this section.
(*c*) F7[…]
(5) This section shall not operate to restrict or delimit any power that, apart from this section, the Social Finance Foundation has to borrow money.
##### 9. Gifts.
##### 8A. **F8[Borrowing by subsidiary from promotional financial institution**
**8A.**(1) The subsidiary may, for the purposes of this Act, with the consent of the Minister, the Minister for Finance and the Minister for Public Expenditure and Reform, and subject to such terms and conditions as may be approved by the Minister, borrow money (including money in a currency other than the currency of the State) from a promotional financial institution whether by means of the issue of debentures (or other debt security) or otherwise.
(2) The aggregate at any one time of borrowings by the subsidiary under this section and*subsection (4)*of*section 8*shall not exceed€100 million.
(3) Moneys borrowed under this section shall be used by the subsidiary—
(*a*) to lend moneys to microenterprises under*section 7*, or
(*b*) to repay (in whole or in part) any loan made to the subsidiary by the Social Finance Foundation in accordance with*subsection (4)*of*section 8*.
(4) For the purposes of this section, moneys borrowed in a currency other than the currency of the State shall be deemed to be the equivalent in the currency of the State of the actual moneys borrowed, such equivalent being calculated at the rate of exchange prevailing at the time of the borrowing for that currency and the currency of the State.]
##### 9.. **Gifts.**
**9**.— (1) The Minister or the subsidiary may, with the consent of the Minister for Public Expenditure and Reform, accept a gift of moneys (the purpose of the making of which is to benefit the Fund) upon such trusts or conditions (if any) as may be specified by the donor.
@@ -138,7 +164,7 @@
(7) Nothing in this section shall operate to restrict or delimit any power that, apart from this section, the Minister has to accept a gift of moneys, land or other property.
##### 10. Microenterprise Loan Fund scheme.
##### 10.. **Microenterprise Loan Fund scheme.**
**10**.— (1) The Minister may, with the consent of the Minister for Finance and the Minister for Public Expenditure and Reform and after consultation with the Social Finance Foundation, make a scheme or schemes for the purposes of this Act.
@@ -168,11 +194,11 @@
## PART 3 Management of Microenterprise Loan Fund
##### 11. Formation of company.
##### 11.. **Formation of company.**
**11**.— The Social Finance Foundation shall, after consultation with the Minister, the Minister for Finance and the Minister for Public Expenditure and Reform, cause a private company limited by shares (in this Act referred to as the “subsidiary”) conforming to the conditions laid down in this Act to be formed and registered under the Companies Acts.
##### 12. Name and share capital of subsidiary.
##### 12.. **Name and share capital of subsidiary.**
**12**.— (1) The name of the subsidiary shall be Microfinance Ireland.
@@ -182,7 +208,7 @@
(4) The Social Finance Foundation shall not, without the consent of the Minister, alienate the share issued to it under *subsection (3)*.
##### 13. Memorandum and articles of association of subsidiary.
##### 13.. **Memorandum and articles of association of subsidiary.**
**13**.— (1) The memorandum of association of the subsidiary shall be in such form consistent with this Act as may be approved by the Minister with the consent of the Minister for Finance and the Minister for Public Expenditure and Reform.
@@ -190,7 +216,7 @@
(3) Notwithstanding anything contained in the Companies Acts, no alteration of the memorandum of association or articles of association of the subsidiary shall be valid or effectual unless made with the prior approval of the Minister given with the consent of the Minister for Finance and the Minister for Public Expenditure and Reform.
##### 14. Disqualification for office of director of subsidiary.
##### 14.. **Disqualification for office of director of subsidiary.**
**14**.— (1) A director of the subsidiary shall cease to be qualified and cease to be a director of the subsidiary if he or she—
@@ -208,7 +234,7 @@
(2) This section is in addition to, and not in substitution for, any provision of the Companies Acts by virtue of which a person is not qualified for, or shall cease to be, a director of a company.
##### 15. Membership of either House of Oireachtas or European Parliament.
##### 15.. **Membership of either House of Oireachtas or European Parliament.**
**15**.— (1) Where a director of the subsidiary is—
@@ -232,7 +258,7 @@
(3) A person who is for the time being entitled under the Standing Orders of either House of the Oireachtas to sit therein or who is a member of the European Parliament shall, while he or she is so entitled or is such a member, be disqualified for being a director of the subsidiary or a member of the staff of the subsidiary.
##### 16. Disclosure of interests by directors of subsidiary.
##### 16.. **Disclosure of interests by directors of subsidiary.**
**16**.— (1) Where at a meeting of the directors of the subsidiary any of the following matters arises, namely—
@@ -264,7 +290,7 @@
(6) Section 194 (amended by section 2 of the Companies (Amendment) Act 2009) of the Act of 1963 shall not apply to a director of the subsidiary.
##### 17. Disclosure of interests by members of staff of subsidiary.
##### 17.. **Disclosure of interests by members of staff of subsidiary.**
**17**.— (1) Where a member of the staff of the subsidiary has a material interest, otherwise than in his or her capacity as such a member, in any contract, agreement or arrangement, or proposed contract, agreement or arrangement, to which the subsidiary is a party, that person shall—
@@ -278,7 +304,7 @@
(3) Where a person contravenes this section the subsidiary may make such alterations to the person’s terms and conditions of employment as it considers appropriate or terminate the person’s contract of employment.
##### 18. Disclosure of confidential information.
##### 18.. **Disclosure of confidential information.**
**18**.— (1) A person shall not disclose confidential information obtained by him or her while performing functions as a director or a member of the staff of, or an adviser or consultant to, the subsidiary, or a member of the staff of such adviser or consultant unless he or she is duly authorised by the subsidiary to so do.
@@ -290,15 +316,15 @@
(*b*) proposals of a commercial nature or tenders submitted to the subsidiary by contractors, consultants or any other person.
##### 19. Funding of subsidiary.
##### 19.. **Funding of subsidiary.**
**19**.— (1) All expenditure incurred by the subsidiary in accordance with an arrangement under this section shall be paid out of moneys standing to the credit of the Fund.
(2) The Minister may, with the consent of the Minister for Public Expenditure and Reform, make an arrangement in writing with the subsidiary in relation to expenditure of moneys (other than moneys loaned by the subsidiary under *section 7* or paid to the Social Finance Foundation in connection with any loan made to the subsidiary by the Social Finance Foundation in accordance with *subsection (4)* of *section 8*) by the subsidiary in the performance of its functions under this Act.
(2) The Minister may, with the consent of the Minister for Public Expenditure and Reform, make an arrangement in writing with the subsidiary in relation to expenditure of moneys (other than moneys loaned by the subsidiary under *F9[section 7*, paid] to the Social Finance Foundation in connection with any loan made to the subsidiary by the Social Finance Foundation in accordance with *subsection (4)* of *section 8* F10[or paid to a promotional financial institution in connection with any loan made to the subsidiary by that promotional financial institution in accordance with*subsection (1)*of*section 8A]*) by the subsidiary in the performance of its functions under this Act.
(3) If the subsidiary is wound up either voluntarily or by the court, any moneys remaining in the Fund after the payment of all debts of the subsidiary incurred in accordance with an arrangement under this section shall be paid into the Central Fund.
##### 20. Accounts and audit.
##### 20.. **Accounts and audit.**
**20**.— (1) Without prejudice to the requirements of the Companies Acts in relation to balance sheets and accounts, the subsidiary shall keep in such form as may be approved by the Minister, with the consent of the Minister for Public Expenditure and Reform, all proper and usual accounts of all money received or expended by it and, in particular, shall keep in such form as aforesaid all such special accounts as the Minister may, with the consent of the Minister for Public Expenditure and Reform, from time to time direct.
@@ -314,10 +340,11 @@
(*c*) Regulations 17, 18, 19, 20, 21, 22, 25, 26 and 39 of the European Communities (Companies: Group Accounts) Regulations 1992 (S.I. No. 201 of 1992).
##### 21. Annual report.
##### 21.. **Annual report.**
**21**.— The subsidiary shall, not later than 30 June in each year, prepare and submit to the Minister a report on its activities in the immediately preceding year, and the Minister shall, as soon as may be after receiving such report, cause copies of the report to be laid before each House of the Oireachtas.
##### 22. Review of operation of Act.
##### 22.. **Review of operation of Act.**
**22**.— The Minister shall commence a review of the operation of this Act not later than 2 years after the date of its passing.
2012-07-24
Microenterprise Loan Fund Act 2012
original version
Text at this date