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Key Updates from the Companies (Corporate Governance, Enforcement and Regulatory Provisions) Act 2024

Key Updates from the Companies (Corporate Governance, Enforcement and Regulatory Provisions) Act 2024

By Sinéad Floody FCG, 4th December 2024

The Companies (Corporate Governance, Enforcement and Regulatory Provisions) Act 2024 officially commenced on December 3rd. This act brings key updates to the Companies Act 2014.

Key Highlights of the Act:

  • Virtual and Hybrid Meetings: Companies can now hold fully virtual or hybrid general meetings, offering greater flexibility and inclusivity.
  • Streamlined Processes: Improvements include reducing unnecessary administration and modernising corporate operations.
  • Empowered Regulators: Authorities like the Corporate Enforcement Authority (CEA), Irish Auditing and Accounting Supervisory Authority (IAASA), and the Companies Registration Office (CRO) gain expanded powers to address corporate non-compliance and white-collar crime.

Among the 64 provisions now in force, highlights include:

  • Expanded use of electronic communication for general meetings.
  • The permanent introduction of hybrid AGMs into the Companies Act 2014
  • The permanent allowance of counterpart signatures on documents under seal.
  • Additional grounds for involuntary company strike-off such as failure to maintain Register of Beneficial Ownership.
  • Offenses for obstructing CEA investigations.
  • Enhanced rescue options for small and micro-companies.
  • Extended disclosure powers for enforcement bodies like the CEA and IAASA.
  • The CRO may request proof of authorisation for the use of registered office addresses.

An exclusion from the commencement order is Section 22, which stipulates that companies failing to file their annual return on time for any of the five financial years preceding the relevant financial year will not forfeit their audit exemption. This provision has not yet been enacted into law and will commence when the CRO have updated their CORE system to facilitate the new rule.

Looking Ahead to 2025

The remaining 26 provisions will commence next year, allowing technical updates to the CRO’s ICT systems. These include changes to filing processes and audit exemption rules for small companies.

If you have questions surrounding the Companies (Corporate Governance, Enforcement and Regulatory Provisions) Act 2024 or how this may affect your company, please get in touch: give us a call at +353(0)1 6461625 or fill out our online contact form.

Disclaimer: This article is for guidance purposes only. It does not constitute legal or professional advice. No liability is accepted by Company Bureau for any action taken or not taken in reliance on the information set out in this article. Professional or legal advice should be obtained before taking or refraining from any action as a result of this article. Any and all information is subject to change.

Sinéad Floody FCG

Corporate Services Manager - Sinéad is a Chartered Secretary and is a Fellow of the Chartered Governance Institute, formerly known as the ICSA. Sinéad achieved a first-class honours in the MSc. in Management & Corporate Governance at Ulster University and holds a Bachelor of Irish Law (LLB). Sinéad is an integral part of our team heading up our Company Secretarial Department and has worked for the company for over 7 years. As a leader of good governance, Sinéad is skilled and approachable as she assists her team to provide exceptional services to our customers. We are pleased to share that Sinéad has been appointed to the ICSA Company Secretarial Practice Committee. As a Chartered member, she holds an important role in upholding the Code of Professional Standards and Ethics. Sinéad often lends her knowledge and experience, having had articles published with the ICSA. Sinéad has assisted thousands of Irish companies with their quest for good governance and compliance.