The Companies Act 2014 (the “Act”) was generally commenced with effect from 1 June 2015. The Act involves an overhaul of the existing company law regime in place since the 1960’s. The Act segregates companies by corporate type and applies different law to each type of Company. The Act does not apply to charities established as charitable trusts or unincorporated associations. Where charities are incorporated entities, they are generally established as companies limited by guarantee not having share capital (“Guarantee Companies”). This update sets out on overview of the impact of the Act on Guarantee Companies.
There is an 18 month transition period (commencing on 15 June 2015) for the introduction of the Act. At the end the transitional period, all of the existing Guarantee Companies will be deemed to be “CLGs” (companies limited by guarantee without a share capital).