The Companies Act 2014 (or CA 2014 as we have come to call it) came into effect on the 1st of June 2015. It’s the biggest single piece of legislation in the history of the State. It has turned the structure of previous company law on its head and now follows a ‘think small first’ approach.
The first 15 Parts of the Act focus on what is likely to be the most common form of company in Ireland – that is the private company limited by shares, or Ltd.
So now, the vast majority of Irish companies will find all of their company law requirements set out in a easy to follow, logical series of parts. The remaining parts of the Act deal with other types of company and the special requirements that apply to these – such companies include designated activity companies, or DACs; plcs; various forms of unlimited company, and companies limited by guarantee.
There is much to be welcomed in this new Act.
For example audit exemption provisions have now been extended to include small groups, dormant subsidiaries, and companies limited by guarantee. There is also an ability for certain companies to dispense with physical annual general meetings, and for some companies, the ability to appoint a single director only.
But as with any new legislation, it will be a challenge for us all in getting to grips with the look and feel of the new law. Here at Chartered Accountants Ireland our technical team, our practice consulting team and members of our various technical committees have been working to make these challenges as painless as possible.
Recently in conjunction with CCAB-I, we issued 5 new Technical Releases which address key changes in the areas of financial reporting, auditing, and related matters. Our microsite on CA 2014 provides a direct link to the new legislation, and also to related statutory instruments.
The Institute will continue to monitor Company Law developments, and if appropriate will issue further guidance. Watch out too for details of upcoming CPD courses, and our Practice Consulting Team has recently launched a Companies Act 2014 Disclosure Checklist and Pro forma Financial Statements.
Thanks for watching.