The transition period for re-registering existing private companies to a LTD or a DAC expires on Wednesday 30 November 2016.
The failure by the directors of a company to take steps to re-register is a breach of their statutory duty, notwithstanding the fact that if no action is taken, a company will automatically convert to a LTD. However, automatic conversion to a LTD would be a breach of the Companies Act 2014 in instances where companies are obliged to register as a DAC.
Given that the Companies Act 2014 was the first updating and consolidation of our company law legislation in over 50 years, as an Institute, we recommend that all directors take the necessary steps before the expiry of the transition period and arrange for the appropriate documentation to be lodged with the Companies Registration Office. While the CRO are struggling to process re-registration documents that in itself should not prevent directors complying with their statutory duties.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
