A draft of the Company Law Consolidation & ReformBill was published last week and is expected to be introduced to the Dail in Autumn this year.
According to OSK Accoutants Dublin, the Consolidation and Reform Bill is designed to simplify procedures for private companies which comprise of over 90% of the companies operating in ireland and specifically:
The Consolidation & Reform Bill will have two divisions:
Some proposed changes for private companies are:
1. Asingle document constitution with no objects which does away with the ultra vires concept.
2. Companywill only require one director and a company secretary (who cannot be the same person).
3. Presentrequirements in relation to AGM, Special Resolutions etc. to be disposed of and procedures simplified.
4. Proceduresin relation to share transactions such as purchase of own shares, reorganisation of shares and share reductions will be simplified and in particular court approval will not be necessary.
5. Simplifiedprocedures to be introduced in relation to registering judgments and charges and applications for schemes of arrangement.
6. Aclear list of directors duties in their role as officers of a company.
7. Directorswill certify that Auditors were made aware of all relevant information.
The effect of these changes will ease the regulatoryburden to setting up and operating private companies and associated costs.
The early publication of the draft bill will helpinterested parties to understand its benefits in advance of it becoming law.
For further information please contact Jimmy Dolan PartnerOSK Accountants Dublin.
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