Each week our OmniPro Corporate Consultants team respond to a huge number of client queries. In this series of blog posts, we share with you the most common questions that keep coming up time and time again. This month, the team take a look at CRO errors and how to fix them.
If you too have any questions you think our Corporate Consultants team may be able to help with, you can get in touch directly using the emails listed above, or by calling 053 910 0000.
Question:
A Form B5 was submitted to the CRO, unfortunately, it has recently come to light that the Company Register and B5 were completed and submitted with an error. What are our options to fix this?
Answer:
The submission can be fully removed from CRO record by applying to the High Court to remove the submission and have the correct B5 in its place, however, with any application it is at the discretion of the courts.
Alternatively, you can rectify the company’s register under S.173 CA2014 with a Form B42A that is filed with CRO as the shares were issued in error. Please note going down this route the previously filed B5 with the error will remain on the system but the B42A showing and correcting the error will be visible.
If you choose this route to rectify the register, a directors meeting will need to be held to note an error on the register had been made when issuing the shares and the directors suggest to members to agree to approve the amendment to the Register. The rectification should state that there is an amendment to the B5 Submission XX (you can find the submission numbers usually on VisionNet or Search for Less) and that the issued shares were incorrectly stated on the B5s as well as the company register. You should also include detail about the number of shares and class of shares as well as noting they should not have been allotted and it was done in error.
The B42A can only be filed where the rectification of the register does not adversely affect any individual(s), so you will need to receive confirmation from the person/entity who was allotted the shares in the form of a letter agreeing to the rectification of the register and this should be attached to the B42A. The agreement should state that the person/entity approves the amendment to the Register of Members and for the Form B5 to reflect the correct number of shares allotted. Finalise the letter by stating: ‘I hereby authorise you update the Register of Members of the company as the holder of such shares’ and have the member sign the declaration.
The meeting resumes to issue the Form B42A which is sent to the CRO, with the letter from the member together with the filing fees of €15. This is a manual document that you can download from the CRO.
If the annual return and accounts have been filed with this error you will need to amend these using a Form B1B to amend the annual return to show the correct issued shares and a Form B1X to amend the accounts if applicable. These can be found on CORE.
If the internal beneficial owners register and RBO were also updated with the error the relevant steps should be taken to correct them as soon as possible.
OmniPro Corporate Consultants
At one of the end spectrum, company secretarial work such as formations and annual compliance can be routine and repetitive. While at the other end, corporate law projects involving share transactions, company re-registrations and constitutions are highly complex and typically require bespoke solutions.
At OmniPro, our team of chartered company secretaries and chartered accountants covers the breadth of these engagements. We know the Companies Acts inside out, understand the allied tax implications and can provide you with appropriately briefed and experienced corporate legal representation where required.
- Company Formations
- Outsourced Co-Sec
- Company Law Compliance
- Advisory Service
- Company Law Training
If you too have any questions you think our Corporate Consultants team may be able to help with, you can get in touch directly using the emails listed above, or by calling 053 910 0000.