The deadline for existing private companies to convert to a designated activity company (DAC) by ordinary resolution has now passed.
However, it is still possible for a company to become a DAC before the end of the transition period (30 November 2016) by passing a special resolution of the members, re-registering the company as a DAC and making the necessary amendments to the memorandum and articles of association of the company.
Alternatively, where the company has debt securities listed or admitted to trading on any market, it is possible to pass a resolution of the directors of the company, converting the company to a DAC and making the necessary amendments to the memorandum and articles of association.
In both scenarios, the resolution and updated constitutional documents will need to be filed with the Companies Registration Office (CRO). The CRO will then issue a new certificate of incorporation to the company, noting its status as a DAC.
Companies that have not applied to become either a DAC or a LTD during the transition period will be automatically converted to a LTD by the CRO after 1 December 2016.
The CRO expects to receive an influx of filings towards the end of the transition period and it is therefore advisable that companies apply to become a LTD or a DAC sooner rather than later to ensure that the CRO has time to process such applications.
The CRO has stated that it is not guaranteed that applications received towards the end of the transition period will be processed before 30 November 2016. We would encourage companies to consider this matter at the earliest opportunity and take the necessary steps to begin the process.