Companies (Accounting) Bill 2016 – Micro Companies Regime – Part 4

This is the final article in a four-part series which aims to address some of the changes which the Bill will introduce to Irish law.

The micro company is a new concept in Irish law. Companies which are entitled to avail of the Micro Companies Regime will gain more from the Bill than any other entity.

The Micro Companies Regime

The Micro Companies Regime allows companies to avail of all the benefits associated with the Small Companies Regime, which was discussed in the previous article, in addition to the following reliefs:

• Exemption from the requirement to include information regarding Directors’ remuneration as well as any consideration for Directors’ services paid to any third party.

• Exemption from the requirement to file a Directors’ report.

The financial statements of a micro company are deemed to give a true and fair view of the assets, liabilities and financial position of the company. Accordingly there is no obligation for the Directors of a micro company to satisfy themselves that the financial statements give a true and fair view of the company’s financial position. In circumstances where a micro company chooses not to file a Directors’ report, an auditor’s opinion on the consistency of the Directors’ report is naturally not required. However, if a Director acquires or disposes of shares in the company, then a footnote describing the particulars of the transaction must be included in the notes to the financial statements for the financial year in question.

• Exemption from the requirement to provide any particulars regarding employees.

• Exemption from the requirement to provide information on remuneration for audit, audit-related or non-audit work.

• Exemption from the requirement to provide any information in relation to any arrangements not included on the balance sheet.

• Exemption from the requirement to provide information regarding any arrangement or transaction in which a Director or a connected person has a material interest.

No Public Limited Company or Unlimited Company is entitled to avail of the Micro Companies Regime.

It is important to note that the Bill has not yet been enacted and may be subject to change. Some of the changes mentioned above will be examined in greater detail in future articles.

For further information regarding the Companies (Accounting) Bill 2016 please contact Maeve Walsh at mwalsh@reddycharlton.ie.