Companies Act 2014 – 1 Year On
Having just passed the 1st anniversary of the commencement of the Companies Act 2014, are Company owners/directors on-board with the changes and new company structures implemented at that time?
Recent evidence would indicate that Companies have been slow to date on embracing the changes with, of the 166,000 private limited Companies in existence as at 1 June 2015, only approximately 10,500 companies have converted to the new Limited (LTD), 300 re-registered to a Designated Activity Company (DAC) and 1,000 have changed their name.
As there is now less than 3 months left within which Companies can pass the resolutions to re-register as a DAC and 6 months to convert to a LTD, it is advisable for Companies to consider the best structure for their business and take early action rather than get caught up in the last minute rush as we near the end of the Transition Periods. Also, despite some advice to the contrary, SMEs should consider whether the default conversion to a LTD on 30 November 2016 will work for them, i.e. you will not have a physical Constitution, therefore, you may well experience difficulties if trying to open bank accounts, arrange financing, tender for large contracts, etc..
If we can assist with any queries you may have on the Companies Act 2014, please do contact us.