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Company Ownership Question???

  • 10-09-2007 5:51pm
    #1
    Scotty #
    Registered Users, Registered Users 2 Posts: 3,774 ✭✭✭


    Hi, I am trying to find out who is the legal owner of a "guarantee company without a share capital"?? I've tried googling it but of the 26 results returned, none seem to be very helpful. I know such a company must have 7 "members" but are these the owners? Also, a couple of other legal questions...

    a. If such a company was "non-profit" but actually turned quiet a large profit are there any legal consequences to this?

    b. If the manager, who seemed to be answerable to nobody (and not one of the "members") was giving themselves €10,000 tax free bonuses, was sending out invoices with reqests for payment made payable to themselves personally rather than the company, was knowingly overcharging clients, was getting family members to do any maintenance work at extortionate prices, etc, etc, etc. Would any of this actually be illegal? If so, who exactly should it be reported to??

    Ty for any info...

    BTW its not a charity but fairly close.


    Mods if I have phrased any of this contrary to charter please edit accordingly.


Comments

  • #2
    frodi
    Registered Users, Registered Users 2 Posts: 520 ✭✭✭frodi


    All profit is taxable, only exception is when the company has charitable status. This has to be agreed with Revenue, it is not self declared.

    As for Tax free bonus, again all income is taxable. If it is not declared then Revenue again might be interested.

    Go to CRO.ie and check out the company returns. You can down load (for a small fee) the companies articles and annual returns, list of directors & secretary. If it is a Limited by Membership company (sounds like it might be) then it still has to file these returns every year.


  • #3
    Tom Young
    Legal Moderators, Society & Culture Moderators Posts: 4,338 Mod ✭✭✭✭Tom Young


    A. No consequences. Would rollover to the next period. The arts can be amended to fix this by any members. Perhaps by resolving to distribute funds in excess or by allocating shares.

    B. Looks a bit dodgy, I'd agree with Frodi on the assumption of status. See whats in the annual accounts. There piles of remedies in statute for this. The basis for reporting it would need to be grounded, if you're not directly involved in the company you might not be able to do anything and be very certain that the claims are correct. If the manager is a director also, you can remove under 182 of 1963 Act.

    ODCE - Office of Director of Corporate Enforcement can also investigate claims. www.odce.ie I believe there is also a confidential service.


  • #4
    Scotty #
    Registered Users, Registered Users 2 Posts: 3,774 ✭✭✭Scotty #


    Thanks very much for your replies...

    I am not looking for the specific owners of a specific company but rather who (if anybody) is the legal owner of a "guarantee company without a share capital". Such a company must have 7 "Members", are these the owners? I downloaded some docs on the company I am interested in but it didn't list the 7 members.. but did list 2 directors. Would these be the legal owners then? A "guarantee company without a share capital" is technically a "Public" company (I think) so is there actually any "owner" at all? If not then who is entitled to any profit?
    wrote:
    As for Tax free bonus, again all income is taxable. If it is not declared then Revenue again might be interested.
    What if it were declared but put through as some kind of tax-free payment like expenses or something... still illegal?


  • #5
    frodi
    Registered Users, Registered Users 2 Posts: 520 ✭✭✭frodi


    Scotty # wrote:
    Thanks very much for your replies...



    What if it were declared but put through as some kind of tax-free payment like expenses or something... still illegal?

    That is up to the Revenue Commissioners. They have tight rules about what and how much can be given Tax free. Once it is declared they will check to see if it is legal.


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