What happens now for a company incorporated before the commencement of the Companies Act 2014?

Income Tax Deadline
October 28, 2015
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What happens now for a company incorporated before the commencement of the Companies Act 2014?

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Private Limited Companies:

This “conversion” procedure affects approximately 85% of Irish registered companies which are currently Private Companies (Limited by Shares)

At 1st June 2014 all existing Private Company Limited by Shares have now become a DAC Designated Activity Company.

You now have three choices:

  • You leave your company as a Designated Activity Company and after the transition period of 18th Months from 1st June 2014 (ie 30th November 2016) you company will automatically convert to a LTD company Limited by Shares. Your company continues to be governed by it’s existing Memorandum and Articles of Association until the end of the transition period. At the end of the transition period there may still be forms that are needed to be filed.
  • You can choose now to convert your company from a DAC to a LTD. You company will no longer have Memorandum and Articles of Association, but will be governed by a constitution, and have unlimited powers.

Our office can assist you in this matter, as it involves filing necessary forms and resolutions with the companies registration office.

  • If you require your company to be a DAC, then you will have to convert your company before the 31st August 2016. At the moment your company is temporally a DAC until the end of the transition period, at which point it will automatically convert back to a LTD company. Therefore if your company if required to be or you decide that you want your company to be a DAC you must convert before the 31st June 2015, after this date you can only convert your company to a DAC by High Court Order.

Our office can assist you in this matter, as it involves filing necessary forms and resolutions with the companies registration office.

 

The main advantages of changing your company now from a DAC to LTD is that:

  • The company will no longer need memorandum and articles of association and therefore will have unlimited powers and therefore cannot act ultra vires.
  • The LTD company eliminates the need for a second director. Although the company must still have a separate secretary the duties of the company secretary are less onerous than the duties of a director.

Unlimited Companies

Must now change their name to include the words Unlimited Company at the end of their name.

Guarantee Companies:

Must now change their name to include the words Company Limited By Guarantee at the end of their name.

(Our team can advise you on your company’s requirements in relation to the introduction of the new Companies Act 2014)

CONTACT:

Should you have any queries or require any further information on the conversion of your company or the new requirements in relation to the new Companies Act 2014 please contact Avril O’Neill on 053-9235287 or email avril@etdoyle.ie

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