The Companies Act 2014 consolidates the existing Companies Acts and will replace the Companies Acts 1963-2013.
It was signed into law by the President of Ireland on 23rd December 2014 and will come into effect on 1 June 2015.
It also introduces a number of reforms which are designed to make it easier to operate a company in Ireland.
The Companies Act 2014 permits the following company types:
DAC – Designated activity company limited by shares/limited by guarantee with share capital
LTD – Private company limited by shares
PLC – Public limited company
CLG – Company limited by guarantee
ULC – Private unlimited company having a share capital
PULC – Public unlimited company not having a share capital
All new companies must include one of the above designations in their name
Existing Private Companies (epcs) do not automatically become LTD companies on the commencement date.
- They operate under DAC legislation for the duration of the Transition Period.
- They do not have to change their name during the Transition Period
- They cannot avail of the features of the LTD company without having been converted first
Designated Activity Company (DAC) main features:
- They have a memorandum in their constitution which state the objects for which the company is incorporated
- It is bound by the ultra vires rule
- It must have at least two directors.
- It must hold an AGM
- Can’t operate majority written resolutions
Limited Company (LTD) main features
- The ultra vires rule does not apply so there is no restriction on what business the company can carry on as long as it is not illegal
- It has a constitution instead of Memorandum and Articles of Association
- It can have a single director