The Companies Act 2014 will be implemented imminently which promises to modernise company law and reduce the administrative burden on business. However, it also places more responsibility on company directors.
In summary, the Companies Act 2014 creates 7 new company types – of which the two most popular will be :
- Private Company Limited by Shares (LTD)
- Designated Activity Company (DAC)
Under the new legislation, company directors will be required to take on more responsibility from a governance perspective. There are increased penalties for non-compliance.
All companies should appoint a director to oversee the transition process to include:
- What type of company it should become and what transition steps are required – in general the transition is over 18 months, although a company that is becoming a DAC has to begin the process within 15 months.
- Changing directors / company secretary in order for the director to play a more active role.
- Ensuring compliance with the revised requirements in relation to accounting records, financial statements and filing of returns.
- Planning for any name change eg. DAC and updates to website, letterheads etc.
- Reviewing directors’ loans.
- Reviewing the existing Memorandum and Articles of the company and preparing a new simplified constitution for the company.
- Reviewing directors and officers insurance where appropriate.
Contact OSMS if you have any queries with regard to any of the above to ensure that your company’s requirements are met – please email mmolloy@osms.ie or call 087 278 3860 for a free consultation.