Company Striking Off
The striking off process for an insolvent company is a bit of a gamble. Ultimately you will decide how best to deal with your insolvent company.
What is Company Striking Off?
Companies that are formed and, therefore, are registered within England and Wales have a record of their existence kept at Companies House.
If a company is struck off from the register then the company is noted as “Dissolved” on Companies House before it is finally removed from the register completely.
A Voluntary Strike off at the end of the life of company is a simple yet precise process to follow. Complexities only really come into play where the company is insolvent.
Whether you’re planning to voluntarily strike off your company or whether you’re company is being threatened with striking off being initiated by Companies House you should be aware that creditors of the Company can object to the Strike Off to Companies House.
Objections to a Striking off by Creditors
Anyone who is owed money by the company can apply to Companies House to have the Striking off action suspended. A creditor may object on multiple occasions.
A Few Negatives of Striking Off
The right of objection means that the success of the Striking off cannot be guaranteed.
Prior to the successful Strike off of the company no protection is afforded to the company from creditor action.
There is no way around the S.216 IA’86 restriction on re-use of a company name by a former Director.
Once a Company has been struck off any remaining assets transfer to the ownership of the crown.
After striking off a company can be put back onto the register at any point during a period of 20 years after the date of the striking off.
Considering Having Your Insolvent Company Struck Off at Companies House?
Is Your Insolvent Company in the Process of Being Struck Off by Companies House?
It may not be too late for to take back control of the closure of your company and put yourself back in a position to be able to continue in business once your original company has been closed.