The new Companies Act 2014 came into force on the 1^st of June 2015. This Act introduces name changes to a number of company types and consolidates all the Companies Acts from 1963 to 2013.

The vast majority of small business owners are private companies limited by shares. You will be required to change to a new company type, one of which (the LTD company) is a much simplified company type.

All companies currently registered as the “Private Limited by Shares” company type must choose to convert to one of these two new company types – LTD (Private company limited by shares), or DAC (Designated Activity Company). Guarantee companies and unlimited companies will be required to change their names under the new Act.

This conversion process is to last for a period of 18 months during the “transition period”. Where a private company limited by shares does nothing, then by default, they become a LTD company under the new regime at the end of the transition period.

Doing nothing is not recommended. There are various options you can elect now when converting the company that will not be available if you use the default mechanism, such as, having one director, rather than two and dispensing with the requirement for AGM’s. Furthermore, your memorandum and articles will be “deemed” to be a single document constitution. The memorandum and articles filed will not represent the actual constitution and can lead to disputes.

The Company Registration Office (CRO) is not charging for companies undergoing the conversion process or meeting the name requirements under the new Act.

For more information on this contact Roisin at roisin@rocs.ie or call 061 502005.

This article is general in nature and cannot be regarded as legal advice. It is general commentary only. You should not rely on the contents of this article without consulting one of our Solicitors. If you would like advice regarding how the law applies to your individual circumstances, then please contact Roisin O’Connell Solicitors.