导读
Under the Companies Act 2014 (the Act), Irish private limited companies may be incorporated as either a company limited by shares (CLS) or a designated activity company (DAC). Companies incorporated prior to 1 June 2015 need to convert to either a CLS or a DAC.
In common
Both can have one shareholder
Private limited liability company
Separate legal entity, subject to suit in its own name
Can dispense with holding of a physical AGM
Key differences
Conversion to a CLS or DAC
Company remains the same legal entity
Existing rights and obligations not affected and no regulatory approval required
Validity and enforceability of any security interests granted not affected
Upon conversion to a DAC, company must change its name to end with 'DAC' or 'Designated Activity Company'
Must amend constitutional documents as part of the conversion process
No amendment to existing documents required other than notification of change of name if a DAC
When is a DAC required
When listing debt on a recognised stock exchange
Entering into finance leases
Granting of loans as part of its business
Carrying on the business of a credit institutionor insurance company
Under the Companies Act 2014 (the Act), Irish private limited companies may be incorporated as either a company limited by shares (CLS) or a designated activity company (DAC). Companies incorporated prior to 1 June 2015 need to convert to either a CLS or a DAC.
In common
Both can have one shareholder
Private limited liability company
Separate legal entity, subject to suit in its own name
Can dispense with holding of a physical AGM
Key differences
Conversion to a CLS or DAC
Company remains the same legal entity
Existing rights and obligations not affected and no regulatory approval required
Validity and enforceability of any security interests granted not affected
Upon conversion to a DAC, company must change its name to end with 'DAC' or 'Designated Activity Company'
Must amend constitutional documents as part of the conversion process
No amendment to existing documents required other than notification of change of name if a DAC
When is a DAC required
When listing debt on a recognised stock exchange
Entering into finance leases
Granting of loans as part of its business
Carrying on the business of a credit institutionor insurance company