Business in Ireland

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• Changes to Company Law Planned

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  Helena Deane    Group moderator

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  Changes to Company Law Planned

  Changes to the Company Law are in the pipeline, to make business formation ever easier in Ireland.
  
  The legislation, which comprises 952 sections and six schedules on over 1,300 pages of text, is expected to represent the largest piece of legislation in the history of the State when complete. It is claimed to be the most significant reform in Irish company law since 1963, and consolidates the 15 existing Company Acts as well as a significant number of statutory instruments and judgments.
  
  As well as consolidating existing law in the area, Pillar A of the Bill will make important changes which will make it easier and cheaper to start and run a company. The legislation published today contains all provisions relevant to the private company limited by shares, which under the Bill will be known as “cls” instead of “ltd”, and which accounts for over 90% of companies in Ireland. This company type will now be put at the centre of Irish company law, and important reforms will be made to the way this company type operates:
  
  - A cls will be allowed to have only one director;
  
  - A cls will only be required to have one document in its company constitution, and the Act provides for a default document to apply in all cases except where the company changes this;
  
  - A cls will have the same legal capacity as a natural person, reducing the necessity to prepare long company constitutions, and reducing legal disputes caused by the ultra vires doctrine;
  
  - A cls will no longer be required to have a “physical” AGM every year – it will be possible to do this by correspondence;
  
  Other changes include an exhaustive listing of the duties of directors (previously contained in caselaw) and of all criminal offences under company law.
  
  The publication of “Pillar A” will allow all of these stakeholders the opportunity to become familiar with the provisions of the proposed new law, and to interrogate these provisions from a technical perspective in advance of the Bill being enacted”.
  
  (source: finfacts.com)
  
  • 01 Jun 2011, 11:07 am
  Helena Deane wrote: > Changes to the Company Law are in the pipeline, to make business > formation ever easier in Ireland. > > The legislation, which comprises 952 sections and six schedules on > over 1,300 pages of text, is expected to represent the largest piece > of legislation in the history of the State when complete. It is > claimed to be the most significant reform in Irish company law since > 1963, and consolidates the 15 existing Company Acts as well as a > significant number of statutory instruments and judgments. > > As well as consolidating existing law in the area, Pillar A of the > Bill will make important changes which will make it easier and > cheaper to start and run a company. The legislation published today > contains all provisions relevant to the private company limited by > shares, which under the Bill will be known as “cls” instead of “ltd”, > and which accounts for over 90% of companies in Ireland. This company > type will now be put at the centre of Irish company law, and > important reforms will be made to the way this company type operates: > > > - A cls will be allowed to have only one director; > > - A cls will only be required to have one document in its company > constitution, and the Act provides for a default document to apply in > all cases except where the company changes this; > > - A cls will have the same legal capacity as a natural person, > reducing the necessity to prepare long company constitutions, and > reducing legal disputes caused by the ultra vires doctrine; > > - A cls will no longer be required to have a “physical” AGM every > year – it will be possible to do this by correspondence; > > Other changes include an exhaustive listing of the duties of > directors (previously contained in caselaw) and of all criminal > offences under company law. > > The publication of “Pillar A” will allow all of these stakeholders > the opportunity to become familiar with the provisions of the > proposed new law, and to interrogate these provisions from a > technical perspective in advance of the Bill being enacted”. > > (source: finfacts.com)