The Companies (Accounting) Act 2017 which was commenced on 9 June 2017 introduced a new “micro” category of company and can be applied to financial years beginning 1st January 2015. As micro-companies are in most instances owner-managed, statutory financial statements are not required to facilitate communication between the shareholders and the directors in the company. In order to be categorised as a micro company, a company must satisfy at least two of the following conditions: Turnover must be less than €700,000 Balance Sheet must be less than €300,000 There must be less than 10 employees If […]

Companies Act 2014 Conversion and Audit Exemption

As most company directors are by now aware the new Companies Act 2014 came into force on 1 June 2015. Companies have to change status under the new legislation and undergo a conversion process generally to a Private Company Limited by Shares (LTD) or a Designated Activity Company  (DAC). It is estimated that over 96% of companies will be taking the LTD option. The main advantages to becoming an LTD are: The company need only have one Director. However the Company Secretary cannot be the sole Director. The company will no longer have to operate within […]

Companies Registration Office News

The Companies Registration Office (CRO) have issued a few reminders in their recent newsletter: 1. A new form B1 was introduced from 1 April. The old version will only be accepted until 1 October (inclusive). The new form can be found on the CRO website (www.cro.ie). If you are filing using co sec software, ensure that it is up to date. 2. Documents filed with the CRO are available to everyone (for a fee) on the CRO website. To facilitate this it is necessary to scan the documents. Documents printed on high gloss paper and/or printed […]

Introduction to Dividends

Guest post by Maria Fahy, Parfrey Murphy. A dividend is the distribution out of a company’s profits to it shareholders (members). Every company has the implied power, subject to any restrictions which may be imposed by the Articles of Association, to apply its profits to the distribution of dividend amongst its members. This is a reflection of the fact that companies are vehicles through which profits are made. However, there is no legal obligation on the company to pay a dividend, even where there are sufficient distributable profits available, unless the company’s Articles of Association state […]

Shareholders’ Agreements

Guest post by Maria Fahy, Parfrey Murphy. A Shareholders’ agreement may be loosely defined as an agreement (contract) between some or all of the shareholders in a company and sometimes the company itself, which is intended to govern the rights and obligations of the parties thereto. Frequently, shareholder’ agreements will also deal with the management of the company. The advantages of using a shareholders’ agreement are as follows: It ensures secrecy for those provisions which could be publicly sensitive. Often shareholders’ agreements are detailed as to the remuneration of the directors of the company and to […]