Keeping good company
Claire Lord examines governance reforms in the new Companies Bill and what these will mean for private limited companies in Ireland.
The Companies Bill 2012 will bring significant reform to the Irish law of private companies. When it comes into force, the Bill will consolidate the current 16 Companies Acts − and many of the related statutory instruments − into a single, comprehensive statute. The Bill is aimed at making it easier for companies to conduct business in Ireland.
Every private limited company will have to prepare for these changes by choosing to register as either a designated activity company (DAC) or a new form of the private company limited by shares (CLS). This migration must take place within 18 months of the Bill gaining force of law. Companies that do not take any steps to adopt one of these new structures will automatically become a CLS.