Have you converted your company to comply with Companies Act 2014?

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The deadline for converting Private Companies Limited by Shares is fast approaching. You have the option of converting to the new model Company Limited by Shares or re-register as a Dedicated Activity Company:

1. Convert to new LTD model by passing Special Resolution – this must be completed by 30 November 2016
2. Re-Register as a DAC by passing and Ordinary Resolution (no later than three months prior to the transition period) – this must be completed by 31 August 2016

If a private company does not convert to new LTD Company or re-register as a DAC, it will automatically convert to an LTD after the expiration of the transition period.

It would be best practice for a private company to take action as outlined above so as to ensure you can adopt a new Constitution in accordance with the Companies Acts 2014 rather than rely on your defunct Articles of Association.

The LTD will be the most common company type on the Register and a range of new reforms in the Companies Act, 2014 will apply to it including:

•             a one-document constitution in place of the existing M&A

•             the ability to have a single director

•             the power to dispense with an AGM

•             having the contractual capacity of a natural person

•             its Directors must ensure compliance with Parts 1 – 15 only of the Companies Act, 2014

The DAC (designated activity company) and its features include:

•             its activities will be limited by its objects clause

•             it will have a constitution that comprises both a Memorandum and Articles of Association

•             it must have at least two Directors

•             its must hold an AGM where there are more than 2 members

Dylan Byrne is Director in OSK. Contact OSK today to find out how you can convert your limited company to comply with Companies Act 2014.

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