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Introduction
This booklet is
a guide to having
your company removed
from the register
of companies. Our
booklet, 'Liquidation
and Insolvency',
is also useful if
you are considering
winding up your
company.
A company may be
struck off the register
and dissolved if:
- it has applied
to the Registrar
to be struck off;
or
- the Registrar
concludes that
it is not carrying
on business or
in operation.
You
will find the relevant
law in the Companies
Act 1985, Section
652 and Sections
652A to 652F which
were inserted by
the Deregulation
and Contracting
Out Act 1994.
This booklet also
covers how, in certain
circumstances, your
company may be restored
to the register.
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CHAPTER 1
Voluntary striking-off
and dissolution
1. Who can
apply to have a
company struck off
the register?
A private company
that is not trading
may apply to the
Registrar to be
struck off the register.
It can do this if
the company is no
longer needed. For
example, the active
directors may wish
to retire and there
is no-one to take
over from them;
or it is a subsidiary
whose name is no
longer needed; or
it was set up to
exploit an idea
that turned out
not to be feasible.
The procedure is
not an alternative
to formal insolvency
proceedings where
these are appropriate,
as creditors are
likely to prevent
the striking off
(see questions 4
and 7).
Even if the company
is struck off and
dissolved, creditors
and others could
apply for it to
be restored to the
register (see chapter
3).
A private company
can apply to be
struck off if, in
the previous three
months, it has
not:
- traded or otherwise
carried on business;
- changed its
name;
-
for
value, disposed
of property
or rights that,
immediately
before it ceased
to be in business
or trade, it
held for disposal
or gain in the
normal course
of its business
or trade (for
example, a company
in business
to sell apples
could not continue
selling apples
during that
three-month
period but it
could sell the
truck it once
used to deliver
the apples or
the warehouse
where they were
stored);
-
engaged
in any other
activity except
one necessary
or expedient
for making a
striking-off
application,
settling the
company's affairs
or meeting a
statutory requirement
(for example,
a company may
seek professional
advice on the
application,
pay the costs
of copying the
Form 652a, etc).
However, a company
can apply for
striking off
if it has settled
trading or business
debts in the
previous three
months.
A company cannot apply
to be struck of if
it is the subject,
or proposed subject,
of:
-
any
insolvency proceedings
(such as liquidation,
including where
a petition has
been presented
but has not
yet been dealt
with); or
-
a
Section 425
scheme (that
is a compromise
or arrangement
between a company
and its creditors
or members).
2.
What should I do
before applying?
There are safeguards
for those who are
likely to be affected
by a company's dissolution.
If your company
has creditors, members
etc, you are advised
to warn all the
people listed in
question 4, before
applying, as any
of them may object
to the company being
struck off. Any
loose ends should
be dealt with before
you apply.
It is also advisable
to notify any other
organisation or
party who may have
an interest in the
company's affairs,
otherwise they might
later object
to the application.
Examples include
local authorities,
especially if the
company is under
any obligation involving
planning permission
or health and safety
issues, training
and enterprise councils
and government agencies.
From the date of
dissolution, any
assets held by a
dissolved company
will belong to the
Crown - see chapter
2, question 5.
3. How do
I apply?
You should request
a Form 652a from
the Registrar. Forms
are also available
from the sources
listed under further
information.
The form must be
signed and dated
by:
- the sole director,
if there is only
one;
- by both, if
there are two;
or
- by the majority,
if there are more
than two.
You
must give the name,
address and telephone
number of the person
Companies House
should contact about
the application.
You should then
send the completed
form, with the £10
fee, to the Registrar
of Companies, Companies
House, Crown Way,
Maindy, Cardiff
CF14 3UZ.
Make the cheque
payable to 'Companies
House' and write
the company number
on the reverse.
4. Who must
I inform?
Within seven days
after sending Form
652a to the Registrar,
you must provide
copies of the form
to the following:
- members,
usually the shareholders;
-
creditors
including all
contingent (existing)
and prospective
(likely) creditors
such as banks,
suppliers, former
employees if
they are owed
money by the
company, landlords,
tenants (for
example, where
a bond is refundable),
guarantors and
personal injury
claimants. Also,
you must notify
appropriate
offices of the
Inland Revenue,
DSS and Customs
& Excise
if there are
outstanding,
contingent or
prospective
liabilities;
- employees;
- managers
or trustees of
any employee pension
fund;
and
- any
directors who
have not signed
the form.
Anyone
who becomes a member,
creditor etc, after
the application
must also be sent
a copy of the form
within seven days
of doing so.
All VAT-registered
companies must notify
the relevant VAT
office (Finance
Act 1985).
5. How should
I inform the various
parties?
A copy of the Form
652a should be delivered
to, left at, or
posted to them at:
- the last known
address (if an
individual); or
- the principal/registered
office (if a company
or partnership).
NOTE:
To notify
creditors
who have
more than
one place
of business,
you must
send copies
of the form
to or leave
copies at
all the
places of
business
where the
company
has had
dealings
in relation
to the current
debts (for
example,
the branch
where you
ordered
goods or
which invoiced
you). It
is advisable
to keep
proof of
delivery
or posting.
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6. How is
the form registered?
The Registrar will
check the form and,
if acceptable, put
it on the company's
public record. An
acknowledgement
will be sent to
the address shown
on the form. The
company will also
be notified at its
registered office
address to enable
it to object if
the application
is bogus.
7. Can anyone
object to dissolution?
Any interested party
may object.
8. How and
why can they object?
Objections must
be in writing and
sent to the Registrar
of Companies with
any supporting evidence,
such as copies of
invoices that may
prove the company
is trading. Reasons
for objecting include:
-
the
company has
broken any of
the conditions
of its application
(for example,
it has traded,
changed its
name or become
subject to insolvency
proceedings)
during the three-month
period before
the application,
or afterwards;
- the directors
have not informed
interested parties;
- any of the declarations
on the form are
false;
-
some
form of action
is being taken,
or is pending,
to recover any
money owed (such
as a winding-up
petition or
action in a
small claims
court);
- other legal
action is being
taken against
the company;
- the directors
have wrongfully
traded or committed
a tax fraud or
some other offence.
9. What if
I change my mind and
want to withdraw my
application?
Directors must withdraw
the application using
Form 652c if a company
ceases to be eligible
for striking-off.
This may be because
the company:
- trades or otherwise
carries on business;
- changes its
name;
-
for
value, disposes
of any property
or rights except
those it needed
in order to
make or proceed
with the application
(for example
a company may
continue the
application
if it disposes
of a telephone
which it kept
to deal with
enquiries about
its application);
-
becomes
subject to formal
insolvency proceedings
or makes a Section
425 application
(a compromise
or arrangement
between a company
and its creditors);
-
engages
in any other
activity, unless
it was necessary
or expedient
in order to:
make or proceed
with a striking-off
application;
conclude those
of its affairs
that are outstanding
because of what
has been necessary
or expedient
to make or proceed
with an application
(such as paying
the costs of
running office
premises while
concluding its
affairs and
then finally
disposing of
the office);
or comply with
a statutory
requirement.
Form
652c can be completed
and signed by any
director. The form
must be sent to
Companies House.
10. What
happens when the
Registrar accepts
a Form 652a application?
The Registrar will
advertise and invite
objections to the
proposed striking-off
in the London Gazette.
The Registrar will
strike the company
off the register
not less than three
months after the
date of this notice
if he sees no reason
to do otherwise
and the application
has not been withdrawn.
The company will
be dissolved when
the Registrar publishes
a notice to that
effect in the Gazette.
(At the time of
striking-off, a
letter will be issued
to the contact name
on Form 652a confirming
the proposed date
of dissolution.)
Offences
and penalties
It is an offence:
- to apply
when the
company
is ineligible
for striking-off;
- to provide
false
or misleading
information
in, or
in support
of, an
application;
- not
to copy
the application
to all
relevant
parties
within
seven
days;
- not
to withdraw
the application
if the
company
becomes
ineligible.
Most offences
attract a
fine of up
to £5,000
on summary
conviction
(before a
magistrates'
court) or
an unlimited
fine on indictment
(before a
jury). If
the directors
deliberately
conceal the
application
from interested
parties, they
are liable
not only to
a fine but
also up to
seven years
imprisonment.
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Anyone convicted
of these offences
may also be disqualified
from being a director
for up to 15 years.
11. Do I
need to send a fee
with Form 652a?
A fee of £10 is
payable to cover
the cost of providing
the service. The
fee will not be
refunded if the
application is rejected
or withdrawn after
its registration.
A further fee will
be payable for a
new application.
Any cheques must
be made payable
to 'Companies House'
and the company
number written on
the reverse.
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CHAPTER
2
Defunct companies
1. Can the
Registrar strike
off a company?
Yes, if it is neither
in business nor
in operation. The
Registrar may take
this view if, for
example:
- he has not received
documents from
a company that
should have sent
them to him; or
- mail he has
sent to a company's
registered office
is returned undelivered.
Before
the Registrar strikes
a company off the
register, he must
inquire whether
it is still in business
or operation. If
he is satisfied
that it is not,
he will publish
a notice in the
London Gazette that
he intends to strike
the company off.
A copy notice is
placed on the company's
public record. If
he sees no reason
to do otherwise,
the Registrar will
strike the company
off not less than
three months after
the date of the
notice. The company
will be dissolved
on publication of
a further notice
stating this in
the Gazette. At
the date of dissolution
any assets held
by a dissolved company
will belong to the
Crown: see question
5.
2. How can
I avoid this action?
If the company is
to remain on the
register, it is
important to reply
promptly to any
formal inquiry letter
from the Registrar
and to deliver any
outstanding documents.
Failure to deliver
the necessary documents
may also result
in the directors
being prosecuted.
3. Can I
object?
The Registrar will
take into account
representations
from the company
and other interested
parties such as
creditors.
4. How does
the Registrar's
intention to strike
off a company appear
in the London Gazette?
The Company Law
Official Notifications
Supplement to the
London Gazette publishes
weekly notices on
microfiche. Copies
are available from
HMSO Publications,
51 Nine Elms Lane,
London SW8 5DR.
5. What
happens to the assets
of a dissolved company?
From the date of
dissolution any
assets held by a
dissolved company
will be 'bona vacantia'.
This means they
belong to the Crown.
Enquiries about
bona vacantia property
should be addressed,
as appropriate,
to:
If the company's
registered
office is in
Lancashire: |
The
Solicitor to
the Duchy
of Lancaster
66 Lincoln's
Inn Fields
London WC2A
3LH |
If the company's
registered
office is in
Cornwall or
the Isles of
Scilly: |
The
Solicitor to
the Duchy
of Cornwall
10 Buckingham
Gate
London SW1E
6LA |
|
In all other
cases: |
The
Treasury Solicitor
(BV)
Queen Anne's
Chambers
28 Broadway
London SW1H
9JS |
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CHAPTER 3
Restoration to the
register
The Registrar cannot
restore a company
to the register
without a Court
Order. When the
Registrar receives
an office copy of
the Court Order
for restoration,
a company is regarded
as having continued
in existence as
if it had not been
struck off and dissolved.
1. Who can
apply to have a
company restored
to the register?
For companies
struck off following
a Form 652a application:
any of the parties
who must be notified
of the application
(see chapter
1, question 4)
can apply to the
Court within 20
years of dissolution
for the name of
the dissolved company
to be restored to
the register. The
Court may order
restoration if it
is satisfied that:
- the person was
not given a copy
of the company's
application;
- the company's
application involved
a breach of the
conditions of
the application;
or
- for some other
reason it is just
to do so.
The
Secretary of State
may also apply to
the Court for restoration
if this is justified
in the public interest.
For companies
struck off at the
instigation of the
Registrar:
the company, or
a member or creditor
of it, can apply
to the Court for
restoration within
20 years of the
dissolution. When
a company applies
for its own restoration,
a member of the
company must also
be an applicant
to give any necessary
undertakings to
the Court.
Where a
company is dissolved:
the liquidator or
any other interested
party such as a
creditor can apply
to the Court for
the dissolution
to be declared void.
In most cases an
application must
be made within two
years of dissolution,
but it can be made
at any time if its
purpose is to bring
proceedings against
a company for:
- damages for
personal injuries
including any
sum under Section
1(2)(c) of the
Law Reform (Miscellaneous
Provisions) Act
1934 (funeral
expenses); or
- damages under
the Fatal Accidents
Act 1976 or the
Damages (Scotland)
Act 1976.
2.
Where do I apply
for a Court Order
for restoration?
Apply to the High
Court by completing
a claim form (this
is the standard
form that starts
proceedings). The
Registrar of the
Companies Court
in London usually
hears restoration
cases in chambers
once a week on Friday
afternoons. Cases
are also heard at
the District Registries.
Alternatively, an
application can
be made to a County
Court that has the
authority to wind
up the company.
3. How do
I serve documents?
The claim form should
be served on:
The
Registrar will accept
delivery by post
(recorded delivery
is recommended).
He will also accept
delivery by hand
at Companies House,
Cardiff or at Companies
House, Bloomsbury
Street, London,
during or outside
normal office hours.
The Registrar will
also require a copy
of the affidavit
or witness statement
in support of the
application.
The Registrar must
be given at least
10 days notice of
the hearing to allow
him time to instruct
the Treasury Solicitor
and deal with the
matter.
4. What
evidence must I
give?
The Court will require
an affidavit (statement
of truth) or a witness
statement confirming
that:
The affidavit or witness
statement should also
cover, as appropriate
to the application:
The
Registrar will provide
information to assist
in an application
to the Court. Before
the Court hearing,
he will normally
ask for:
5.
Are there costs
or penalties?
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