Directors of an Irish Company
Directors of an Irish CompanyUpdated on Wednesday 17th April 2019
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If you are an investor interested in opening a company in Ireland, you should know that Irish law has several provisions when naming a director or a board of directors.
When setting up a business in Ireland, the Irish law states that the company must have at least two directors, and one of them has to be a resident of the European Economic Area (European Union and Iceland, Liechtenstein and Norway). Simpler conditions are allowed when an entrepreneur is setting up a private limited company, which requires having one director, as mentioned by the Companies Act 2014. Our attorneys in Ireland can give you more details on these conditions.
Duties and Obligations of the company directors in Ireland
A director must meet several conditions and our attorneys in Ireland can offer you more information on what the Irish law states upon this subject. Below, you can find the most representative duties of a director:
• Duties arising from common law – a director must act in good faith and not exceed his power; he or she should be skillful and have an area of expertise.
• Duties arising under statute – the duties of his position are related to the proper functioning of the company. A director can be given a loan from the company, under the 1963 Act. However, certain limitations are imposed and our Irish law firm can give further details on this topic.
• Duties arising under contract – the duties that must be accomplished by the director are specified in the contract signed with the company.
Under the Company’s Act, the director is obliged to follow the next procedures:
• keep accounting documents;
• prepare financial statements;
• prepare documents for audit;
• file documents to the registrar of companies;
• perform general meetings, when required.
A director must also meet the age requirement, and the Irish law stipulates that he or she must be at least 18 years old.
Irish Directorship Legislation
A person can legally be the director of more than one company, but not more than 25 companies at the same time. Certain types of companies do not count on the total number of companies to which a person is occupying the director function. When a person is the director of two companies and a company is holding the other, according to the Irish law, the directorship is counted just once, but you can find out more on this topic from our Irish lawyers.
Please contact our Irish law firm for more information about the legal responsibilities that company directors in Ireland must meet.