COMMENCEMENT OF NEW COMPANIES ACT 2014

The Companies Act 2014 will commence on 1st June 2015. It will replace the Companies Acts 1963-2013.

 

Forms to be used AFTER commencement on 1st June are now available on the CRO website.

 

https://www.cro.ie/New-Act-2014/-Forms-and-Leaflets/Form-Comparison

 

SOME OF THE MAIN CHANGES IN NEW ACT AFFECTING ANNUAL RETURNS AND FINANCIAL STATEMENTS

 

 

*** CHANGES TO ANNUAL RETURN (FORM B1) ***

 

There are some changes included in the new B1 form. See link below.  Please

note this form must NOT be submitted before June 1st.

 

Old versions of the B1 form submitted electronically (“captured”) on CORE

before 1 June will be accepted by the CRO for up to 28 days after the date of

“capture”.

 

https://www.cro.ie/New-Act-2014/-Forms-and-Leaflets/Form-B1

 

 

*** FINANCIAL STATEMENTS FILED WITH THE CRO AFTER 1 JUNE 2015 ***

 

The CRO is planning to take the following approach in relation to financial

statements attached to annual returns delivered to the Registrar on or after

1 June 2015:

 

  • if the financial year ends before 1 June 2015 and the financial

statements are signed by the director(s) before 1 June, they must

be prepared and filed in accordance with the 1963-2013 Companies Acts;

 

  • if the financial year ends before 1 June 2015 and the financial

statements are signed by the director(s) after 1 June, they may be

prepared and filed under either the 1963-2013 Companies Acts OR the

2014 Companies Act (it is envisaged that this arrangement will end

in April 2016 when all financial statements in respect of financial

years ending before 1 June 2015 should have been filed with the CRO);

 

  • if the financial year ends after 1 June 2015, the financial statements

must be prepared and filed under the 2014 Companies Act,

 

For further infomation please go to:

 

https://www.cro.ie/New-Act-2014/Annual-Returns/Financial-Statements-after-1-June

 

 

*** FIXING OF LENGTH OF FINANCIAL PERIODS ***

 

Under section 288 of the new Act, the financial statements attached to a

company’s first full annual return (ie with financial statements) must

cover the period from incorporation and must not be for a period longer

than 18 months. Each subsequent financial year begins on the date

immediately after the last financial year end date and must be for a

period of no more than 7 days shorter or longer than 12 months.

 

For further information see Section 3 of CRO Information leaflet No.23

or cRO website

 

https://www.cro.ie/New-Act-2014/-Forms-and-Leaflets/Leaflets

https://www.cro.ie/New-Act-2014/Annual-Returns/Financial-Statements-after-1-June

 

 

*** REVISION OF FINANCIAL STATEMENTS AND/OR DIRECTORS’ REPORT ***

 

A new provision in the 2014 Act is that if the company becomes aware of an

error in the Financial Statements, they should correct the error and file

the corrected documentation with the CRO not more than 28 days after the

date of revision. Where copies of the original Financial Statements or

original Directors’ Report have been laid before the company in a general

meeting or delivered to the Registrar, all revisions should be made with

reference to sections 366 to 379, CA 2014, using the Form B1X.

 

Where a revision is filed with the CRO, section 376(6), CA 2014, requires

that the original Financial Statements or Directors’ Report shall continue

to remain on the Register.

 

https://www.cro.ie/New-Act-2014/Annual-Returns/Rectification-of-Financial-Statements

 

Also see Section 8 of CRO Information Leaflet 23.

 

https://www.cro.ie/New-Act-2014/-Forms-and-Leaflets/Leaflets

 

 

*** AUDIT EXEMPTION ***

 

Companies will only have to meet 2 of the 3 size criteria to qualify as a “small

company” for the purposes of claiming an audit exemption. Guarantee and Group

companies will be able to qualify for the audit exemption. There will be a new

audit exemption available to Dormant companies

 

https://www.cro.ie/New-Act-2014/Annual-Returns

 

Also see Section 4 of CRO Information Leaflet 23

 

 

https://www.cro.ie/New-Act-2014/-Forms-and-Leaflets/Leaflets

 

 

*** EXTENSION OF TIME TO FILE ANNUAL RETURN WILL BE AVAILABLE FROM DISTRICT COURT ***

 

From the commencement date of the Companies Act 2014 (1 June 2015), applications

for an extension of time to file an annual return can be made through the

District Court as per section 343(5) of the Act. The costs of making an

application to the District Court are far less than the High Court (which

is currently the court prescribed).

 

Consequently, from 1 June 2015, CRO will no longer be engaging in correspondence

with companies appealing the application of penalties as a result of the late

filing of an annual return. Instead, companies who need more time to file their

annual return should make an application to the District Court in the district

court area where their registered office is situated.

 

  1. Section 343(5) of the Act will only apply to an annual return that “is to

be delivered to the CRO on or after” 1 June 2015 (ie has not been received by

the CRO before 1 June).

 

See Section 1.7.3 of CRO Information Leaflet 23.

 

https://www.cro.ie/New-Act-2014/-Forms-and-Leaflets/Leaflets

 

https://www.cro.ie/New-Act-2014/Annual-Returns/Extension-of-time-to-file-Annual-Return