![]() The power has been formalised in the 2014 Act,Ī company may apply to the Registrar (CRO) to be struck off the register if the following conditions are satisfied: The CRO has a discretionary power to strike off a company, on the basis of a request by the directors. The Act provided a statutory basis for certain practices which had previously been undertaken by the CRO, on an informal basis.Ī company can apply voluntarily, to be struck off the register. Fewer changes were made to the provisions regarding the restoration of companies. ![]() The 2014 Act amended the provisions for the striking off of companies. The most common ground for involuntary strike off, which has befallen almost 100,000 companies, is the failure to make one or more annual returns. There are a number of grounds upon which a company may be struck off involuntarily, for failures to comply with its legal obligations. Voluntary strike off is permissible in certain circumstances, in particular where the company has ceased to trade or never traded at all. On strike off, the company ceases to exist and its assets vest in a State authority. This must be done under the guidance of a licensed insolvency practitioner.There are provisions for the voluntary and involuntary strike off of companies from the register of companies. By proceeding down this route you may be able to take advantage of Business Asset Disposal Relief which is the most tax-efficient way to extract the money from your company. If you are considering doing this, you should enlist the help of a professional to assist you.ĭepending on the scale of the assets involved, you may wish to consider closing down your business through a Members’ Voluntary Liquidation (MVL). If the objection is upheld then the company will remain active giving you the chance to either continue trading or moving the assets out of the business. Should this be the case, you will need to submit an objection to the strike off detailing the reasons why. Obviously if you have assets in your company, you will be keen to extract these in order to retain ownership of them. When a company is dissolved, the result is that it ceases to exist as a legal entity and as a result its assets and cash will be deemed ‘bona vacantia’, literally ‘ownerless property’, and possession will automatically transfer to the Crown. Compulsory strike off consequences - What if I have assets in my company? ![]() Alternatively you may need to enter into negotiations with creditors in order to have them rescind the application they have submitted against your company. Depending on what lead to the compulsory notice being issued in the first place, you may be required to bring your account up to date which may include filing missing accounts or confirmation statements. Read more on strike off objections below or our dedicated article on what happens next if company strike off has been suspended as a result of an objection from a creditor.Īlternatively, if you want your company to remain active, then you will need to lodge a suspension application to Companies House. However, you should be aware that the Gazette notice will make creditors away of the application against you company and they may well object to it if your limited company has outstanding debts or liabilities. If the company no longer serves a purpose to you and you would be happy with it being closed down then you can simply allow the process to run its course. If your company has been issued with a notice for compulsory strike off, your next move will be determined by what your plans are for the company going forwards. The team are available now - 08 What should I do if my company has been served a compulsory first Gazette notice? No matter what position you are in and need looking for options, speak to a member of the Real Business Rescue team. Don't Worry - There are thousands of other company directors going through the same process.
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