Under the Companies Act 2014, all existing private companies limited by shares should convert to one of the new company types (DAC or LTD) during the transition period which ends on 30 November 2016.
Companies that have not applied to the Companies Registration Office (CRO) to be converted to either a DAC or an LTD during the transition period will be automatically converted to an LTD by the CRO after 1 December 2016. Companies wishing to convert to a DAC must either pass an ordinary resolution to convert by 31 August 2016 or convert by special resolution thereafter and companies wishing to convert to an LTD should pass a special resolution during the transition period ending 30 November 2016. However, it is envisaged that the CRO will receive an influx of conversion filings towards the end of the transition period and it is therefore advisable that companies pass a resolution sooner rather than later to ensure that the CRO has time to process such conversion applications. The CRO has stated that it is not guaranteed that applications received towards the end of the conversion process will be processed before 30 November 2016. We would encourage companies to consider this matter at the earliest opportunity and take the necessary steps to begin the process.
Please contact your usual William Fry contact or one of the key contacts detailed here if you wish us to assist with drafting the necessary documentation required for conversion.
Contributed by Deirdre Mooney.
