New companies legislation published

New legislation aimed at making easier and cheaper to start a business here has been published online.

The proposal, which is part of the Companies Bill, intends to reduce business costs significantly and will reduce the burden of legal documentation.

Under the new legislation, private companies limited by shares, known as "cls", will be allowed to have a single director, one document in its company constitution, and will be permitted to have an AGM by correspondence.

Minister for Jobs, Enterprise and Innovation Richard Bruton published the legislation, which he said was "Pillar A" of the Bill, on the department's website. The rest of the Bill will be published next year, and is expected to be enacted soon after.

The first part of the Bill was published in advance to allow those affected by the changes to prepare, expected to be about 90 per cent of Irish companies.

It is expected to be the biggest reform in company law here since 1963, consolidating the 15 existing Company Acts along with statutory instruments and judgments.

Chairman of the Company Law Review Group Dr Tom Courtney said the publication of the first pat of the legislation was a "landmark moment" in the development of Irish company law.

"The document which is published today is the product of years of very careful and painstaking work in remodelling Irish company legislation around the entity which uses it most – the private company limited by shares – and in making that legislation more accessible to those who need to be familiar with its provisions, whether in the business community or professional advisers," he said.

"The publication of 'Pillar A' will allow all of these stakeholders the opportunity to become familiar with the provisions of the proposed new law, and to interrogate these provisions from a technical perspective in advance of the Bill being enacted."

The Irish Small & Medium Enterprises Association (Isme) said the changes proposed in the Bill would have positive changes on start ups and smaller businesses.

"For too long the area of company law has been confusing, cumbersome and expensive for small business owners," said chief executive Mark Fielding. "Today's announcement should go some way to addressing these anomalies and hopefully will reduce the costs and burdens associated with running or setting up a company in these difficult times."