Companies Act 2014
The Companies Act 2014 commenced on the 1st June 2015.
The Act consolidates and reforms existing Irish Company Law into a single piece of understandable legislation, bringing changes that will affect every company.
We set out as follows what we consider to be the key features of the Act.
Key Highlights of the Companies Act 2014
The Act consolidates and reforms existing Irish Company Law into a single piece of understandable legislation, bringing changes that will affect every company.
All existing private limited companies will need to make the decision to either convert to a new model Company Limited by Shares (“LTD”) or to a Designated Activity Company (“DAC”). Additionally, it is an opportunity to identify what companies are now dormant and will no longer be required as there may be a possibility of winding some of them up.
There is also a requirement for other company types to take action during the transition period, including a company limited by guarantee and a private unlimited company.
Some of the other key features of the Act that companies should be prepared for are:
- The requirements regarding director’s loans to and from a company whereby the Act encourages loans to be in writing.
- Change to the qualifying criteria for a “small company”. Companies Limited by Guarantee, Unlimited Companies and Group Companies will be able to qualify for audit exemption and there will be a new audit exemption available to Dormant Companies.
- The requirement to prepare a Directors Compliance Statement for certain companies.
- The requirement to have an Audit Committee for certain companies.
- The ability to revise defective financial statements.
- Changes to the approval of financial statements.
- Director’s duties have become codified under the Act with eight key duties.
- Directors are now required to make sure that the Company Secretary has the skills or resources necessary to discharge his or her statutory and other duties.
If you have any queries regarding how the Act may impact on your Company or its Directors please contact Emma Dunne, Manager in our Corporate Compliance Department.
