Beneficial Ownership: New regulations for Companies including Companies limited by Guarantee


In line with a number of changes which are coming down the pipeline for companies, from 26th June 2017 the CRO will likely be tasked with maintaining the Central Register of Beneficial Ownership of Corporate and Other Legal Entities, in the State.

 

This is a follow on from the requirement introduced on 15th November 2016 that requires companies, including those limited by guarantee, and certain other entities to create and maintain a Register of Beneficial Owners.

 

To initiate and meet this requirement:

  • Companies must create a Register of Beneficial Owners holding 25% +;
     
  • To do this, notice should be sent to members assumed to be Beneficial Owners and/or any third parties who may reasonably be expected to know the identities of beneficial owners;
     
  • When the Beneficial Owners are confirmed, their details should be entered in the Company’s Register of Beneficial Owners
     
  • If, after all reasonable efforts, Beneficial Owners cannot be identified, then ‘senior managing officials’ i.e. Director’s names must be entered;
     
  • From 26th June 2017 this information must be sent to the newly appointed Registrar of Beneficial Ownership of Companies and Industrial and Provident Societies;
     
  • The information must be submitted electronically. The portal for this is yet to be released.
     
  • There is a three-month deadline set for complying i.e. by 26th September 2017
     
  • Non-compliance is a criminal offence and subject to fines of up to €5,000 against the company and/or non-responsive beneficial owners. Test prosecutions are expected

For further reading, a fact sheet can be found at the following link:

http://www.formations.ie/static/RegisterofBeneficialOwnersFactsheet-May2017.pdf

Source for above: Formations.ie