Designated activity company

A designated activity company (Irish: Cuideachta Ghníomhaíochta Ainmnithe) or DAC is a form of company in Ireland created by the Companies Act 2014. Like a limited company, designated activity companies have limited liability. Additionally, they may only carry out activities listed in their constitution documents, and so the concept of ultra vires continues to apply to them. Notable DACs include Ryanair and Ulster Bank.

Preliminary[]

The following briefing on CLSs and Migration of Existing Private Limited Companies may be read in conjunction with our clients briefing. The introduction of the DAC and as such the sections within Part 16 of the bill have been provided in Part 16 of the Bill all of which relate to DAC and represent new provisions within Irish company law. Parts 1 to 14 of the Bill that govern the CLS have to be applied to a DAC barring they are supplemented, modified or disapplied by Part 16.^[1]

Features of the DAC include[]

There is a memorandum in the constitution of Designated Activity Companies that declares the motive for which the company has been constituted.^[2]
A memorandum and articles of association have been included in their constitution document.
It is a private company limited by guarantee having limited liability also it has a share capital.
At least two directors are a must in it who have to be over eighteen years
Where there are 2 or more members the majority written resolutions could be passed without ruling out the need to hold an AGM.
Unless exempted the name of the company must end in “Cuideachta Ghníomhaíochta Ainmnithe” or “Designated Activity Company”
The pertinence could be claimed for audit exemption also company audit exemption be made inoperative
In Schedule 7 to the Companies Act 2014 there is a constitution in the format set out for DAC limited by shares.
In Schedule 8 to the Companies Act 2014 there is a constitution in the format set out for DAC limited by guarantee

Citations[]

^ Heffernan, McCann FitzGerald LLP-Paul; Osborne, Peter; Bleahene, Frances (2014-10-28). "The designated activity company (the "DAC")". Lexology. Retrieved 2021-11-05.
^ "Comprehensive guide to a Designated Activity Company (Dac)". www.nathantrust.com. Retrieved 2021-11-06.

This article relating to law in Ireland is a stub. You can help Wikipedia by .

[1] Heffernan, McCann FitzGerald LLP-Paul; Osborne, Peter; Bleahene, Frances (2014-10-28). "The designated activity company (the "DAC")". Lexology. Retrieved 2021-11-05.

[2] "Comprehensive guide to a Designated Activity Company (Dac)". www.nathantrust.com. Retrieved 2021-11-06.

[1]

[2]