Companies Act 2014 section 971

Power to dispense with "designated activity company" or Irish equivalent in name of charitable and other companies

Section 971 allows a Designated Activity Company (DAC) whose objects are charitable or similar in nature to drop the words "designated activity company" (or the Irish equivalent "cuideachta ghníomhaíochta ainmnithe") from its name, provided it meets certain conditions regarding its objects, use of profits, and constitutional requirements.

• A DAC whose objects promote commerce, art, science, education, religion, charity or another prescribed purpose may omit "designated activity company" from its name, provided its constitution requires all profits to be applied to those objects, prohibits distributions to members, and requires assets on winding up to be transferred to a similarly constituted company.
• The exemption takes effect automatically once a director or secretary delivers a prescribed statement to the Registrar confirming compliance; the Registrar will refuse registration or a name change omitting the required words unless this statement has been filed.
• A DAC benefiting from this exemption must not alter its constitution so as to fall out of compliance, and the Registrar may direct a non-compliant DAC to restore the words to its name; breaching these rules or ignoring a Registrar's direction is a category 3 offence.
• Existing licences and exemptions granted under earlier legislation (the original or substituted section 24 of the Companies Act 1963) continue in force with necessary modifications, so companies that previously availed of the exemption do not need to reapply, and any DAC using this exemption must state on all business letters and order forms that it is a limited company.

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