Companies Act 2014 section 15

Definitions (Part 2)

Section 15 defines key terms used throughout Part 2 of the Companies Act 2014, covering matters such as lawful company activities, the classification of economic activities, the status of existing private companies, and the transition period for adapting to the new legislation.

• "Activity" covers any lawful purpose for which a company may be formed, including holding, acquiring or disposing of any kind of property.
• An "existing private company" is a private company limited by shares incorporated under previous companies legislation and still in existence when this section commenced, provided it has not since re-registered as a different type of company.
• The "relevant classification system" is NACE Rev. 2, the standard European system for classifying economic activities, used when describing or categorising a company's business.
• The "transition period" is the 18-month window following commencement of this section, during which companies were given time to comply with the new requirements of the Act.