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Why Would a Company Get Struck off

The forced strike is issued by Companies House, and if an appeal is unsuccessful, the closure of the company must take place. The first is that if a company that has requested deletion owes you money, you must be informed of the attempted dissolution of the company so that you can appeal and claim your debts. A deletion can be voluntary and proposed by directors who have no other use for the company and wish to close it, or mandatory, by a third party requesting the closure of your company. Unintentional deletions are less common and usually due to compliance reasons. Under section 1000 of the Companies Act 2006 (652 of the Companies Act 1985), the Companies House Registrar may remove the company from the register (strike) if he has reasonable grounds to believe that no activity is being carried out. Typically, this may be due to the fact that an annual CS01 confirmation form was not filed on time or accounts were not filed on time. A common reason for the deletion of companies is a change of registered office address, which is not communicated to Companies House. If you have assets or cash in your business that you want to retain, you must extract those assets before the business is dissolved or ownership is transferred to the Crown. It is also possible to appeal after a company has been evicted from Companies House if it owes you money at the time of the strike and you were not informed of the strike. In this case, you must be able to prove that the fault exists. Inability to hit the road – Sometimes a business never gets the support it needs or gets on the right track as the owners hoped. Dissolution may be the only way or it may be correct in the future, then the company may be kept inactive. As long as an annual statement is filed with the corporation`s financial statements, it can be sued indefinitely, eliminating the cost of restoring a dissolved entity.

In this case, the creditor may not be informed of the attempted closure of the business until the strike is recorded. If they miss this notice, they may not notice that the company has been dissolved until the process is complete. If you no longer need the business and are happy that it is closing, you can simply let the process unfold. This is only an option if you have no debts or liabilities, have stopped trading, and have exploited the company`s assets. After a few nods, the director discovered that the debt actually came from another limited liability company that he had closed some time ago. Well, actually, he thought he paid his accountant to do «Strike It Off.» Personal liability – If a company continues to act despite a forced strike, directors would lose the limited liability structure of the corporation and would therefore be held personally liable for any debt incurred. If you still have inventory left, now is the time to sell it. You should also sell the company`s assets so you can pay off all debts, taxes, employees, and loans before handing out the remaining money to the owners. Don`t let your company go on a forced strike, it can have consequences, as one of our clients learned the hard way when bailiffs knocked on its door. From the announcement, you have at least 2 months until a second ad announces that the company will be officially removed. Retirement of directors – If there is no natural successor to the existing family or management team, there may be no choice but to close the limited liability company.

The business owner can apply for cancellation of the business as long as it is solvent and it has not traded, sold ownership or changed its name in the last three months. Reorganization of a group of companies – A company may be superfluous for the purposes. Following a restructuring of a group of companies, a joint-stock company can only be a shell whose assets have been transferred elsewhere. In this case, departure is an inexpensive way to close it. It all depends on your future plans for the company. The dissolution or dissolution of a business is the legal process that marks the end of the business. If the company is removed from the commercial register, all remaining creditors will have to write off the money owed to them as bad debts or seek restoration of the company through a court order, which can be a lengthy and costly process.