The long awaited, Companies Act 2014 (“The Act”) was signed into law by the President, Michael D. Higgins, on 23rd December 2014. Although the new Act will not come into effect until June 2015 when it is expected to be commenced by Statutory Instrument, companies and their directors need to start looking at the implications for them of the new legislation and how they need to prepare for it. The function of the new Act is to simplify, consolidate and restructure company law and make it more efficient for a company to do business in Ireland. The new legislation is structured around the private limited company as it is the most common form of company in Ireland.
Why is New Act being introduced:
- It will modernise and simplify company law
- Reduce administrative burden on business
- Ensure good corporate governance
What does this mean for your company:
- It will bring changes in legislation which will affect every company
- All existing Private Companies Limited by Shares will be required to change to a new Company Type
- All CRO forms will change from 1st June 2015
- Old forms will no longer be accepted after this date
- New forms should not be submitted prior to 1st June 2015
Overall the Act simplifies company law and makes it more user friendly and effective. It means that most companies will now adopt a simpler constitution. Also customers can now, without further enquiry, rely on a company to have the necessary authority to do business.
It is a key piece of legislation and will affect you and your business.
The CRO website gives detailed information on many aspects of the Companies Act 2014. It has frequently asked questions, draft forms, draft leaflets and model constitutions.
For more information about The Companies Act 2014 go to www.cro.ie
It is important to note that the Companies Act 2014 has not been commenced. It is expected to commence on 1st June 2015. Companies remain subject to the Companies Acts 1963-2013 until the new Act commences. If you are submitting a form before 1st June 2015 please use current forms under the Companies Acts 1963-2013.
