Strike Off

Summary

A company makes an application to Companies House to be struck off the register and dissolved

Suitability

• Not traded, disposed of an asset held for gain or changed its name in the last 3 months
• Company must not be in any insolvency proceedings or have any agreements with creditors

Process

• Before applying to strike off a limited company must notify interested parties, follow the legal procedure for employees and deal with business assets and accounts
• A DS01 form, signed the company’s directors or a majority where there are more than two, is submitted to Companies House

Directors Risk

• Directors can be held to be personally accountable if the company is struck off without settling all its debts

Limitation Period to Restore

• 6 years except for personal injury proceedings where there is no limit

Cost

• Fee of £10 payable to Companies House

Pros

• Relatively simple to take immediate steps to start process
• No formal meetings of shareholders and creditors required
• Not as intrusive as formal liquidations
• Distributions of <£25,000 after date of application are treated as capital distributions

Cons

• Creditors can lodge objections with Companies House
• Directors at risk of fine, imprisonment or disqualification if application is made by an ineligible company, or false or misleading information is provided.
• Distributions of over £25,000 are treated as income distributions
• Assets or rights remaining in the company at date of dissolution pass to the Crown
• Unless a company reduces its share capital by resolution share capital distributions may only be made with approval of the court or via a members’ voluntary liquidation