Received a “First Gazette notice for compulsory strike-off”?
Q: May, a company that has received a First Gazette notice for compulsory strike-off to, still trade up to finally being struck off?
A: YES. Though, it must then not buy anything on any form of credit. The directors remain open to criticism if not exposure to being personally liable.
Notices published in the Gazette announce the date of striking companies off the register at Companies house. The company then legally cease all activity, including any form of trading.
A formal strike-off requires the recipient company to have three months notice before proceeding with removing the company from the register. Usually directly related to accounts of the company not filed and or tax not paid.
Two scenarios exist which instigate this scenario:
- The companies directors voluntarily determine the company no longer required;
- other parties may then wish to petition for the companies compulsory dissolution. Usually prompted by Companies House. Due to failure to file accounts for the company or update annually, the confirmation statement of the company. The strike-off request published in the Gazette, then, prompts a two month period, allowing objections to be raised. If none forthcoming, then the company shall be struck off the register. At companies house.
What action remains required, once the company has been served a first Gazette notice for compulsory strike-off?
Suppose your company has been issued with a notice for compulsory strike-off. Then, your response depends on your intentions for the future of the company if any at all.
If you no longer require the company, then perhaps allowing the company to be struck off serves a purpose.
However, your company though may have an objection if debts exist within the company.
Alternatively, suppose you want your company to remain active. You will need to need request striking off is ceased by filing a suspension application to Companies House.
Success may then depend on why your company then received a notice?
Suspending strike-off applications?
In addition to directors and shareholder, the creditors of the company, especially the HMRC, may also oppose if owed money.
The companies creditors may consider objecting to the application if they remain unpaid. Allowing an application to pass unchallenged results in the company struck off the companies house registrar. So then you will not have an opportunity to recover monies owed.
So should the strike-off objection succeed, then your company will remain live, and trade on?
Suppose I Personally have assets left in my company?
Company assets remaining in the company once dissolved will be deemed ‘bona vacantia‘ (Vacant Goods)and are property of the crown as the company now has no legal entity status.
Suppose you personally have assets in your company. Therefore, assuming you would require ownership back? Then you should file an objection. In that case, you will be keen to extract these to retain ownership of them. Subject to the success of your objection! Your company remains on the registrar arrange legal separation of the asset. Ensure you seek legal advice ensuring the assets remain retained without the company having any title over it. Perhaps consider a Members Voluntary Liquidation (MVL) as the process of extraction.
An MVL allows claiming “Business Asset Disposal Relief” (Formerly known as Entrepreneurs Relief). Using a licensed insolvency Practitioner while ensuring tax clearance.
For further help when receiving a “First Gazette Notice For compulsory strike-off”.
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