A company is exempt from the requirement to have an EEA-resident director where it has a Section 137 Non-Resident Directors Bond (S.137 Bond) in place.
A S.137 Bond is valid for a two-year period, after which it must be renewed. No element of the S.137 Bond is refundable in the event that the company later appoints an EEA-resident director or a decision is taken the close the company.
The S.137 Bond insures a company for a sum of €25,000, to cover the following:
It is important to note that the S.137 Bond application form states that the company understands and accepts its obligations to both the Revenue Commissioners and the Registrar of Companies. It also contains a statement that the company will indemnify the bond provider in the event of any claim. Once the bond has been obtained, it is filed with the CRO.