In the latest response to Institute letters on the matter, we have been told that the Tánaiste is still awaiting legal advice on whether Northern Ireland resident directors qualify as EEA residents for the purposes of Section 137 of the Companies Act 2014. The Tánaiste’s office also informed us that the CRO has not received many queries on this issue in recent months and that companies formerly reliant on UK resident directors should pursue one of the alternative options available. Read our latest letter and response from the Department.
We are aware that this issue is of concern to many members, particularly as annual returns are currently being filed. We will keep you updated however, in the meantime, you may also wish to contact the CRO and/or the Department of Enterprise, Trade and Employment directly on this matter.
By way of background, section 137 of the Companies Act 2014 requires an Irish-registered company to have at least one EEA-resident director, which until the 31 December 2020 could include a UK (including Northern Ireland) resident director. Exemptions are available if, for example, the company has in place a bond as per section 137(2) of the Companies Act 2014. Alternatively, if, following incorporation, a company applies for and is granted a certificate from the registrar of companies that the company has a real and continuous link with one or more economic activities that are in carried on in the State, that company will be exempted from the requirement to have at least one EEA resident director from the date of the certificate, as long as the certificate remains in force.
In April of this year, we informed readers that Tánaiste Leo Varadkar had sought the advice of the Office of the Attorney General seeking clarification on the impact (if any) that the Trade and Cooperation Agreement reached between the EU and UK has on this requirement, and whether Northern Ireland resident directors in particular will be recognised as meeting this condition. We have been corresponding with both the Department of Enterprise, Trade and Employment and the CRO since the start of the year on this matter.
LOADING...