Starting And Running A Business To Get Easier

Setting up and running a business is set to become cheaper and easier after the Government published proposals under the new Companies Bill.

A host of measures aimed at simplifying the law for private companies has been introduced by the Department of Jobs, Enterprise and Innovation as part of Pillar A of the new Companies Bill.

The 1,406-page legislation consolidates the 15 existing Company Acts as well as a "significant" number of statutory instruments and judgments.

Pillar A is focused on private companies limited by shares (CLS) which make up nine out of 10 businesses here.


The changes proposed in the bill include:

- The minimum number of directors for a CLS will be reduced from two to one.

- The memorandum and articles of association will be replaced by a one-document "constitution".

- A CLS will have the same legal capacity as a "natural person", thus removing the need for a long company constitution and reducing legal disputes.

Companies will be allowed to have their AGM by correspondence rather than having to meet in person. Directors' duties, which were previously only listed in case law, have been included as have all criminal offences under company law.

Enterprise Minister  Mr. Richard Bruton T. D. said the bill was aimed at cutting costs for small and medium enterprises.

"This reform will have a significant impact on reducing business costs. Small businesses will no longer have to go to the expense of holding a physical AGM while the burden of company legal documentation will be greatly reduced.

Crucially, it will be easier for business owners to find out the nature of their legal rights and duties and will reduce the need consult with lawyers."


Mr Bruton added that he decided to publish Pillar A before the entire bill had been drafted in order to allow people and businesses who would be affected to prepare for the changes made by the legislation.

The remainder of the bill is scheduled to be published next year.

For more information around the Companies Bill, please visit: http://www.djei.ie/commerce/companylawreview/companiesbill.htm

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