NEW SUMMARY APPROVAL PROCEDURE
The Companies Act 2014 (the "Act")
came into operation on 1 June 2015 and has introduced significant
reforms in company law in Ireland. One of the key innovations is
the summary approval procedure ("SAP"),
a new streamlined process for the authorisation of up to seven
different types of activities that would otherwise be prohibited
or, in some cases, require a High Court order.
PROHIBITION ON FINANCIAL ASSISTANCE
Section 82 of the Act prohibits any Irish company from directly
or indirectly providing financial assistance for the purpose of an
acquisition (by subscription, purchase, exchange or otherwise) of
shares in itself or in its holding company. Section 82 can be
breached by providing financial assistance by way of a loan,
guarantee, security or otherwise and such assistance is not lawful
unless exempted, or validated using the SAP. The SAP is only
available to private limited companies, designated activity
companies or
