OMCs Part 9: Owner Management Companies that have Share Capital – Limited

chart-594212_640 In part 6 of our blog series on OMC’s we covered the fact that the new Companies Act 2014, which came into force from 1 June 2015 will affect OMC’s. We have covered the issues and changes relating to OMC’s who are designated as CLG’s and DAC's in our last two blogs. This month we will cover OMC’s that have share capital and have made the transition to Limited (LTD).

The laws of a LTD company

Under the new Act from 1 June 2015 OMC’s that have a share capital will be governed by the law of the DAC until converted to Limited status or the end of the transition period. Upon transition the laws of a LTD company will apply and these would include:
  1. Conversion process necessary to convert Limited (LTD) company from DAC
  2. Constitution will replace Memorandum of Association and Articles of Association
  3. No objects clause will be included in its constitution
  4. Is allowed to have one director but is still required to have a secretary who cannot be the same person as the directors
  5. Does not need to hold an AGM if agreed by members
Directors of OMC’s should ensure that their company complies with the requirements of the new Companies Act and obtain professional advice where required on issues noted above.

What questions do you have?

We are happy to help. Please post your comment below or contact our Audit Service Director Will Townsend (wtownsend@cooneycarey.ie) on 01 677 9000. To keep in touch, connect with us on LinkedIn. If this article helped you, please share it with other businesses.