The Companies Act 2014 (the “Act”), consolidates Irish Company legislation and aims to simplify and reform the obligations of smaller companies by introducing a new model type for private companies limited by shares. Since the Act commenced on 1st June 2015, it has provided a modern state of the art Company Law Code, making it easier to transact business in Ireland
What are the key impacts of the Act?
The Act has 24 parts with the first fifteen covering the new model private company limited by shares (LTD). The remaining parts of the Act provide for the other company model types; designated activity company (DAC), company limited by guarantee (CLG), public limited company (PLC), public unlimited company with share capital (PUC), public unlimited company without share capital (PULC), private unlimited company with share capital (ULC), unlimited company (UC). Essentially, the vast majority of Irish companies in existence at present are private companies limited by shares. As such, all companies that are currently registered as private companies limited by shares will need to choose whether to convert to a LTD or to a DAC.
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