Common reasons for objecting to a strike-off include:
- A creditor making a claim against the company for repayment of their debt
- Other forms of legal action are ongoing
- The company not fulfilling its filing obligations
- Making mistakes on the application form or failing to follow the strike-off process correctly
When you make an application for strike-off you need to inform all creditors of your intention to close the business. An advert is also placed in the Gazette, which is the official public record of statutory notices.
HMRC and the banks regularly check the Gazette for notices regarding company strike off, and this allows them to object if they’re owed money by the business. If HMRC objects and the matter isn’t resolved to their satisfaction, they could attempt to liquidate your company, which could trigger an extensive investigation into your actions as a director.
The high street banks also often object to strike off if a Bounce Back Loan is outstanding. This is because, if the company is liquidated rather than dissolved, they can invoke the government guarantee under the Bounce Back Loan Scheme, and recoup their money.