The Companies Act 2014 is due to come into force by Ministerial order on 1st June 2015. This may give rise to significant changes for Irish companies and will certainly put questions in the minds of directors as to what they should do.
For loans by directors to the company (Section 237):
Loans not documented will be presumed not to exist in court proceedings relating to them. Interest not properly documented will be presumed not to exist. Any security intended will be presumed not to have been given.
Therefore the terms should be properly documented, if this has not already been done. If there is no interest or security, a fairly simple loan agreement and a ratifying board minute may suffice.
Please contact Gordon Judge (email@example.com) or Eoin Dennehy (firstname.lastname@example.org) if you have any queries.
Other articles related to the Companies Act 2014:
Companies Act 2014 – new procedures for registering charges
The conversion option affects all companies – Companies Act 2014