Companies Act 2014
What This Means for You:
Under the 2014 Act, the current form of private limited company will cease to exist and will be replaced by two different types of private limited company, being the private company limited by shares (“LTD”) and the Designated Activity Company (“DAC”). The LTD is the default or “model” type of private company limited by shares under the 2014 Act and is designed to simplify some of the burdensome features of the existing private company under the current legislation. The DAC, on the other hand, can be said to be quite similar in form to the existing private company and will retain most of these features. Once the 2014 Act is commenced in June of this year, there will be a “transition period” of 18 months, during which period all existing private companies will need to decide whether to re-register as an LTD or as a DAC. For more details on the key differences between the LTD and the DAC please keep an eye on our website for future updates or alternatively contact the office.