Seán Sherlock (Cork East, Labour) | Oireachtas source

I move amendment No. 270:

In page 1019, between lines 6 and 7, to insert the following:

“Application of sections 114 to 116 to bodies corporate generally

1423. (1) In addition to its application where the company firstly referred to in subsection (1) of it is—

(a) a private company limited by shares; or

(b) by virtue of any of Parts 16 to 24, any other type of company, section 114 shall apply to a body corporate that is not a company, and the foregoing reference in subsection (1) of it to a company, and the other relevant references in that section, shall be read accordingly.

(2) In addition to their application where the company firstly referred to in subsection (1) of either section is—

(a) a private company limited by shares; or

(b) by virtue of any of Parts 16 to 22, any other type of company, sections 115 and 116 shall apply to a body corporate that is not a company, and the foregoing reference in subsection (1) of section 115 or 116 to a company, and the other relevant references in either such section, shall be read accordingly.”.

The intention behind this new section is to replicate current law as set out in section 32(1) of the 1963 Act. The current law was designed to prevent undesirable forms of inter-company financing between holding companies and subsidiaries.

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