Companies Act 2014 section 1010

Restriction on commencement of business by a PLC

Section 1010 sets out the requirement for a public limited company to obtain a trading certificate from the Registrar before it can conduct business or exercise borrowing powers.

• A PLC registered on original incorporation or following a merger or division must not do business or borrow until it receives a trading certificate from the Registrar, or re-registers as another company type.
• The Registrar will issue the certificate once the PLC demonstrates that the nominal value of its allotted share capital is at least the authorised minimum of €25,000, and delivers a prescribed declaration signed by a director or secretary.
• Doing business or exercising borrowing powers without the certificate is a category 3 offence for both the PLC and any defaulting officer, and directors may be jointly and severally liable to compensate third parties for losses if obligations are not met within 21 days of being called upon.
• Once issued, the certificate is conclusive evidence of the PLC's entitlement to trade and borrow, and any transactions entered into in contravention of this section remain valid.