With the transition period coming to an end, companies need to make decisions about their future and soon.
Existing private limited companies will have to decide whether to become a Company Limited by Shares (new simplified entity) or a Designated Activity Company. During the course of the 18 month transition period, expected to commence on 1 June 2015, companies will have to convert and factors to consider include reviewing existing Articles of Association and the provisions of the Companies Act 2014 to determine what provisions your company’s new constitution will or should contain.
The necessary conversion steps then need to be taken for each company, which may include a change of name.
Failure to take action may be deemed to be a breach of directors’ duties and may result in a corporate form not suitable to the activities of your company.
Our diagram sets out some of the factors to consider to assist you in the decision making process.
Other company types may also be required to change their name or their constitutional documents within the transition period.