COMPANIES ACT 2014
Summary Approval Procedures
One of the changes under the Companies Act 2014 is the introduction of Summary Approval Procedures which will make it easier for LTD, DAC and Companies Limited by Guarantee to enter into certain transactions which in the past were either prohibited or needed Court approval.
The new procedures set out in the legislation validate certain restricted activities as follows:
- Financial assistance for the acquisition of shares
- Reduction in company capital
- Variation of company capital on reorganisations
- Prohibition on pre-acquisition profits or losses being treated in holding company’s financial statements as profits available for distribution
- Prohibition of loans, etc., to directors and connected persons
- Mergers may not be put into effect save in accordance with the relevant provisions of the Companies Act 2014
- Procedures for and commencement of members voluntary winding up
There are strict rules and regulations laid down in the Act in order to avail of the new procedures.
Please feel free to contact us if you would like more information about the Companies Act 2014.