Financial Statement Transition Under the Companies Act 2014

The Companies Act 2014 was always going to be commenced on 1st of June 2015. It was previously stated that the transition process would be as gentle as possible allowing companies and their advisors move easily from the 1963 to 2013 Companies Acts platform to the new legislation. The commencement order giving effect to the legislation (S.I. 169 of 2015) was eventually published on 1st of May 2015.

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The All New Audit Exemption

Audit Exemption

The Companies Act 2014 (CA 2014) has been in gestation for almost 15 years. While there are many innovations and welcome developments in the legislation one of the most eagerly anticipated elements of the new act, from the perspective of the accountancy profession, is Chapter 15 of Part 6, which deals with Audit Exemption.

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The Companies Act 2014 - Clarity At Last

Ireland has waited 13 years from the date of the first Company Law Review Group Report in 2001 until December 2014 to actually get our new Consolidated Companies Act in the form of the Companies Act 2014. Although the Act was enacted on 23rd of December 2014, we had to wait a while longer for the issue of the related commencement order giving effect to the provisions of the Act.

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Friendly Societies and Industrial and Provident Societies - Update

The Registrar of Friendly Societies is responsible for the assessment and registration of applications and any subsequent amendment of rules which societies are obliged to render to the Registrar, and to ensure that registered societies meet their statutory obligations with regard to filing returns, which once registered are made available for inspection by the public.

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Charity Regulatory Authority – What You Need to Know Now!

The Charities Bill was published in 2007, enacted in 2009 and is being commenced in stages. The Charities Regulatory Authority, which was a key innovation under the act, was established on 16th October 2014 by Ministerial Order in the wake of certain revelations in the charity sector. With the increased transparency the Regulator will bring to the sector the hope is that public trust and confidence will be restored.

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Criminal Justice Act 2011 - Implications for Accountants and Auditors

The Criminal Justice Act 2011 (“The Act”) was signed into law on 9th August 2011. The purpose of this wide ranging and somewhat controversial piece of legislation is to provide Gardai power to access information that will assist an investigation into any offence outlined in the Act with particular focus on “White Collar Crime”.

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Allotment and Transfer of Shares

New Shareholders can be introduced to a company in 2 main ways, the allotment of shares and the transfer of shares. In their basic form, allotment and transfers are a simple procedure, however it is important to understand the basic requirements as these are the important part of more complex transactions like Share for Share Exchanges and Share for Undertaking.

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Directors' Duties

Directors are agents of the Company and are in a fiduciary position. The Companies Acts sets out duties and responsibilities to ensure that the Directors act correctly. At the heart of all the duties and responsibilities Directors must act in the best interests of the company at all times.

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Company Meeting Requirements

A board meeting is a meeting of the Board of Directors. In order for Directors to exercise their powers they must do so collectively. The formal procedure for this it to convene a board meeting at which they will resolve and agree to exercise these powers for a particular purpose. Directors meetings are usually held frequently and are quite informal.

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Availing of the Audit Exemption

Availing of the Audit Exemption Section 32 of Companies (Amendment) (No. 2) Act, 1999 (“the Act”) states that a private limited company may avail of an exemption from a requirement to have financial statements audited. In order for a company to be in a position to avail of the audit exemption, the Company must satisfy certain conditions pursuant to Section 32 (3) of the Act. Section 32 (3) (b) of the Act also states that the exemption is conditional to the timely filing of the annual returns at the Companies Registration Office. 

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Cessation of Office by an Auditor & Notifying IAASA

An Auditor may cease to hold the office of Auditor of a Company in a number of ways. These may include:-

  • Resignation from Office by the Auditor pursuant to Section 185 Companies Act 1990;
  • Removal of the Auditor from office by the company (pursuant to Section 160 Companies Act 1963;
  • Retirement by the Auditor at an Annual General Meeting and appointment of another Auditor.
  • A copy of the letter of resignation must be filed at the CRO where an Auditor resigns pursuant to Section 185.

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Commencement Date Clarification for new Size Criteria for Small Companies and Audit Exemption Limits

When the Statutory Instruments No 304 for the revised Small Company criteria and No 308 relating to the new Audit Exemption limits were first announced in August, they caused some confusion as to what financial years the new thresholds could be applied to as the instruments did not make any reference to any commencement date when introduced.

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Mandatory E-Stamping of Share Transfer Forms

The Revenue have made regulations under Section 17A Stamp Duty Consolidation Act 1999, which impose mandatory electronic filing and payment of stamp duty returns. The regulations came into effect on the 1st of June 2011,and all stamp duty returns, where stamp duty is payable, must be filed electronically through the Revenue On-line Service (ROS), regardless of the date which appears on the instrument.

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MUDS Act 2011

The Multi-Unit Developments Act 2011 was enacted on 24th January 2011 which imposes new obligations on Developers and Owner Management Companies. As business advisors and particularly Auditors, you are in a position to advise these entities on their new requirements under the Act.

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Companies (Amendment) Act 2009

The Companies (Amendment) Act 2009 was passed by the Oireachtas and Seanad and signed into law effective of 12th July 2009. The new Act seeks to improve the transparency of loans made by companies that are banks to their directors and to persons connected with them; support the Director of Corporate Enforcement (“The Director”) in his efforts to enforce compliance with company law whether the company being investigated is a bank or not, and amend some existing provisions relating to Irish registered non-resident companies to meet EU Commission concerns

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Limited Company Disclosure Requirements

Since 1st April 2007, every Irish Registered Limited Liability Company are required to disclose certain information on websites and on company electronic communications as a result of the enactment of the European Communities(Companies) (Amendment) Regulations 2007. These new regulations are an addition to the current disclosure requirements for business letters and order forms. The new regulations stem from the increase use of electronic communications and to give consumers some basic information in the interest of transparency.

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