New Companies Act Introduced in Ireland

July 17th 2015
As of the 1st June 2015 the Companies Acts 1963-2013 has been replaced with the Companies Act 2014 in Ireland.
It is believed that this Act will modernise and simplify company law and hopefully reduce administrative burdens.

All private companies limited by shares are required to convert to the new Act.  There are two new company types:-

-The Simplified Private Limited Company (LTD) model.  This allows sole directors and resolutions passed by majority.  Under certain circumstances there is no need for an AGM.  This is a simple constitution document to replace the Memorandum and Articles of Association.  This can engage in any allowed activity.

-The Designated Activity Company (DAC) model.  This does not allow for a sole director, although it does allow for resolutions passed by majority.  It must hold an AGM where there are two or more members.  The constitution is more complex and its Memorandum and Articles of Association must state objects.

Existing companies under the old act have a transition period of eighteen months to convert to the new LTD model and fifteen months to convert to the DAC model.  Companies that do not convert will operate under the DAC legislation until the end of the transition period at which point they will be automatically converted by the CRO to the LTD model.
 
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