Company Law – Update 1

COMPANIES BILL 2012

As the Companies Bill 2012 (the “Bill”) nears enactment, companies are beginning to prepare for transition to the new regime. The Bill will repeal the entire Companies Acts and will consolidate them in a single statute. When enacted, the new Companies Act will contain 1,431 sections. The Bill is built around the most common company type in Ireland which is the private company limited by shares. These companies will be subject to an eighteen month transition period (which can be extended by the Minister for a further twelve months) during which directors and shareholders must decide to either, subject to the passing of a resolution, register as a new form company limited by shares (known as a “CLS”) or as a designated activity company (“DAC”). Continue reading