Company Law No Deal Brexit
Posted by Kathryn Maybury on Friday, 9 August 2019
A post by Kathryn Maybury | Managing Director | KOMSEC Limited | Company Secretarial Services | Corporate Governance | Compliance |
Tel: +353 (0) 1 2107595 Email: email@example.com
COMPANY LAW - NO DEAL BREXIT
It is hard to know how many people actively care or even believe anything one hears about Brexit at this stage. However, as the prospect of a No Deal Brexit edges ever closer to reality companies are left with no choice but to care.
Two things to consider in the event of a No Deal are outlined below.
Companies incorporated in Ireland must have a minimum of one Director resident in the European Economic Area (EEA). The EEA is an International Agreement that extends the EU single market to
non-EU member parties including Liechtenstein, Iceland and Norway.
Currently, a number of companies rely on having a Director resident in the UK to fulfil the above requirement. Clearly, if or when a No Deal occurs than those companies will no longer have an EEA Director and must have an alternative plan in place. Companies are left with pretty much two choices as they can either:
(a) appoint a new Director who is resident within the EEA; or
(b) take out a Bond with appropriate Insurers.
Companies incorporated in the UK and registered in Ireland as an “External Company” will also face changes in the event of a No Deal. Such companies would have registered as an External Company on the basis that they either trade or have a place of business in the State.
In the event of a No Deal then companies incorporated in the UK and registered in this State as an External Company will have to start filing Annual Returns in Ireland under non-EEA country legislation, refer to Sections 1304 to 1306 Companies Act 2014. Given the paucity of filing requirements on External Companies anyway one must assume that this will be a change easily overlooked.
The deadline for considering these issues appears now to be the 31st of December, 2020 so while not urgent you should ensure they are put on your 'to do' list for early Autumn.
As always, if you have any questions on this blog please contact myself or one of my colleagues.
Add your comment below!
Please note that comments are reviewed by the administrator prior being visible.
- All Categories
- Companies Registration Office
- Company Law
- Latest News
- Annual Returns
- Anti-Corruption Legislation
- Beneficial Ownership (1)
- June 2020 (1)
- April 2020 (1)
- March 2020 (2)
- February 2020 (3)
- October 2019 (1)
- August 2019 (1)
- June 2019 (1)
- April 2019 (1)
- March 2019 (1)
- February 2019 (1)
- January 2019 (1)
- November 2018 (3)
- October 2018 (1)
- September 2018 (2)
- August 2018 (1)
- July 2018 (1)
- View older Posts (53)