Compulsory strike off

Author
Shaun Barton | Company Closure Expert
Compulsory strike off
Compulsory strike-off is a process that results in a company being removed from the register at Companies House and permanently closed. It differs from voluntary strike-off, which is carried out by directors to close a company that’s no longer needed.
Companies House typically triggers compulsory strike-off, but only under certain circumstances. So when might this happen and is there anything you can do to prevent your company from being forcibly closed down in this way?
Why are companies forcibly struck off the register?
There are various reasons why Companies House might begin the compulsory strike-off of a business. These are largely centred on a company’s filing obligations and the timely provision of formal documents. For instance,
- The business is no longer operating
- It has failed to file its company accounts
- The annual confirmation statement hasn’t been submitted
- The company has failed to appoint directors
There are unpaid fees or penalties
What is the process of compulsory strike-off?
Initially, Companies House send a letter to the company’s registered address informing them of their intention to strike off and laying out their reasons for doing so. If no response is received, a second letter is sent, and this is a final notice of their intent.
It’s important to note that an accountant’s or other professional adviser’s address may be on file with Companies House so it’s advisable to regularly check for correspondence of this type.
If the company hasn’t responded after two months, Companies House will advertise their intention to strike off in the Gazette. This provides a further two months for the company to respond and for any creditors to make a claim.
After two months have passed with no response, the company will be struck off the register and cease to exist. Any assets still held by the company will be transferred to the Crown but directors are still liable to pay outstanding debts.
Can compulsory strike off be stopped?
You may be able to stop the enforced strike off of your company if you respond to the initial notifications within the time allowed. You can apply to suspend the strike off but you’ll also need to address the reasons behind Companies House plans.
This might involve bringing filing obligations up to date, for example, or submitting the necessary information about the directors of the company. If you have assets held within the business, this is another reason to challenge the enforced strike-off.
As with voluntary strike-off, a third party may also object so they can recoup any monies owed to them. HMRC, your bank, or perhaps a trade creditor, can all make an objection if they have a debt outstanding.
If your company is in the process of being forcibly struck off, please get in touch with our expert team at Company Closure for a free consultation. We can advise you on the best way forward, and provide the professional support you need.
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