Seán Sherlock (Cork East, Labour) | Oireachtas source

The purpose of the section is to accommodate companies which have, on or after 1 March 2002, availed of the exemption from the requirement to include "limited" or "teoranta" in their name. As matters stand, under the Bill all companies which have, on or after March 2002, availed of the exemption, pursuant to section 24(1) of the Companies Act 1963 as substituted by section 88 of the Company Law Enforcement Act 2001, from including "limited" in the name will have to reapply to the Companies Registration Office to obtain an exemption from including "DAC", designated activity company, in their name. This amendment is necessary as it will reduce the burden on such companies and they will not be required to claim the exemption a second time, a procedure which would result in filing fees and administrative overheads. The administrative burden to the Companies Registration Office will also be reduced as it will not have to reprocess these filings a second time.