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Companies Act 2014
What is the Companies Act 2014?
A new Companies Act (2014) will come into effect on 1st June 2015, replacing the Companies Acts 1963 – 2013.
Amongst other changes, it will introduce two new company models — the LTD company model and the Designated Activity Company model.
The directors of all companies currently registered as private companies limited by shares must decide to convert their company to a:
- LTD (Private Company limited by shares)
- DAC (Designated Activity Company limited by shares)
Alternatively, they need to re-register as another company type (where required/preferred).
For more information on the changes coming into effect with the Companies Act 2014, see the Companies Registration Office website www.cro.ie.
What Does this Mean for Your Company?
Your company will not be automatically converted when the Companies Act (2014) becomes law. An 18 month transition period will begin on 1st June 2015, and during this time companies can adopt a new constitution/memorandum and articles of association to convert to the new LTD, DAC or other company type. The Companies Registration Office will not charge a fee for conversion.
During the transition period, all private companies limited by shares will operate under the rules applying to DACs until they convert.
Once the transition period ends and a private company limited by shares has not converted, the Registrar of Companies will automatically convert the company to the new LTD company model. However, where the Directors of a private company limited by shares wish the company to be a DAC, they should do the conversion themselves during the transition period.
You will find more information and support on the CRO website, including frequently asked questions, draft forms, information leaflets and model constitutions. For advice in relation to the Companies Act 2014, independent legal advice should be considered.
How Will this Affect Your Day-to-day Banking?
It won’t. The changes from the Companies Act 2014 will not affect your relationship with AIB or the banking services you receive.
If your company name is changing as a result of the Act then you will need to let us know. If you hold an account with AIB, the company name on all accounts held will need to be changed. Any business credit/debit cards or cheque books held in the company name will also need to be changed and re-issued to reflect the new name of the company.
The different company types are:
LTD - Private company limited by shares
DAC - Designated activity company limited by shares/ limited by guarantee with share capital
PLC - Public limited company
CLG - Company limited by guarantee
UC - Unlimited company
ULC - Private unlimited company having a share capital
PUC - Public unlimited company having a share capital
PULC - Public unlimited company not having a share capital
The below table outlines the required changes in relation to a change of company name on any banking material:
|Current Company Type||Changing to/ becoming||New Company Type||Change of Name Required on Banking Material||Account Name||Credit/ Debit Card||Cheque Book|
|Limited Company||Convert to
|UC (ULC, PUC or PULC)||Yes||Yes||Yes||Yes|
*If ‘unlimited’ is not currently in the name title
For AIB customer accounts, we will provide support through this name change process. If you have any questions, please contact your local AIB branch.