Companies Act 2014 section 138

Supplemental provisions concerning bond referred to in section 137(2)

Section 138 sets out the detailed rules governing the bond that a company must hold when it does not have a director resident in an EEA state, including what the bond must cover, the record-keeping obligations of the nominated person, ministerial powers to prescribe the bond's form, and the requirements for filing a copy of the bond with the Companies Registration Office.

• The bond must cover not only the fines and penalties under section 137 but also the reasonable expenses of the nominated person who calls in the bond, subject to limits approved by the Revenue Commissioners and the Minister.
• The nominated person must keep proper accounts — including an income and expenditure account and a balance sheet — of all moneys received and paid out under the bond.
• The Minister, after consulting the Minister for Public Expenditure and Reform, the Revenue Commissioners and other interested parties, may prescribe who may provide the bond, its form, and the minimum period for which it must remain valid.
• A copy of the bond must be filed with the Registrar at incorporation (if no director is EEA-resident), with any notification of director non-residency under section 139, and with any annual return covering a period during which no director is EEA-resident.

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