Section 137 Bonds – Non Resident Bonds

Who needs a Section 137 Bond?

A company registered in the Republic of Ireland is required to have at least one Director who is resident in the European Economic Area (EEA). Alternatively they can arrange a Section 137 bond to the value of €25,000.

How much do Section 137 Bonds cost?

O’Leary Insurance have arranged several such bonds. We can assist with processing your application and issue the original bond document and a certified copy from €1,575 for a two year period (€787.50 per annum).

To discuss further or to obtain a proposal form please contact Brian O’Mara or Maura Browne, whose details are below.

How quickly can a bond be processed?

Within Ireland

From receipt of the original application form, it generally takes 3 to 4 working days to issue a bond within Ireland.

Overseas

If the bond is being sent overseas, this process naturally takes longer. We have issued bonds across the Atlantic within 5 working days.

What is a bond?

A bond is a guarantee that you will pay a specified amount of money if called upon. The company that underwrites the bond (the guarantor) will honour the obligation to pay an agreed amount if called upon – refer to the table at the end of this page. The guarantor would then recoup the bond amount from the bond holder.

A bond is different to an insurance policy. Insurance is a method of risk transfer; a premium is paid and the insurer takes on the risk.

How is a Section 137 Bond called upon?

These particular bonds are called upon if the company fails to pay a fine or penalty, refer to the link below for more information (Third Party website).

[1] Source: http://www.irishstatutebook.ie/eli/2014/act/38/section/137/enacted/en/html

Section 137 Bonds - Brexit Deadline

A company registered in the Republic of Ireland is required to have at least one Director who is resident in the European Economic Area (EEA). Alternatively they can arrange a Section 137 bond to the value of €25,000.

The UK has left the European Union as of 31st January 2020 but with transitionary provisions in place until 31st December 2020. During this period the UK's trading relationship with the EU remains the same.

However thereafter, if no agreement is in place, UK resident directors will be required to comply with section 137 Companies Act 2014.

In order to be able to deal with the anticipated demand for these bonds, the processing deadline for Section 137 bonds with an effective date after the 31/12/2020 will be close of business on Friday the 11th of December 2020.

 

For further details on Section 137 Bonds, please contact:

Paul – 021 453 6824    pkinahan@oli.ie

 

Other types of insurance for business

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