What Happens If I Convert to LTD Company when Instead I should be DAC?

Q: I have read a lot lately about the New Companies Act 2014. My question is, what happens if I convert to a LTD company, but realise at a later date that maybe I should have been a DAC?

12th June 2015

A: You will have an 18 month conversion period to convert to a LTD company. Under the new companies act all existing limited companies, who after this period have do nothing will automatically be converted to the new form LTD company. If at this time you realise you should have converted to a DAC, it is possible to file the relevant forms and convert to a DAC.

It is also worth noting that other members who hold not less than 15% of the shares and debenture creditors, may be able  to apply to the hight court to convert the company to a DAC. With this in mind, if you have shareholders/debenture holders in your company you should discuss with them before deciding on the company type you wish to be.

Disclaimer: Advice shared in this blog is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this forum, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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