Due to the now seemingly likely No-Deal Brexit, we have been asked by a number of clients as to “How does a No-Deal Brexit affect U.K. resident directors of Irish companies”? If the U.K. leave the European Union on the 31st October 2019, companies with U.K. resident directors only will have to take immediate action to ensure they are not in breach of section 137 of the Companies Act - the requirement for an EEA resident company director.
The options for companies are :
- Appoint another EEA resident director
- Put a Section 137 bond in place which is effectively an insurance premium against any potential breaches in the Companies Act or Taxes Consolidation Act by the company
- Apply to Revenue for a section 140 certificate stating that a company had a real continuous link with a current activity carried on in the state. Please note the applications are only being accepted by Revenue where the company has only U.K. resident directors appointed.