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Can the registrar strike a company off the register?

By: Maksiv Konta

However, it is also possible for a registrar to strike a company off the register if it believes the company is no longer operating or conducting business. It won’t do this without notice however - there are procedures and processes that the registrar must follow, and the company has the opportunity to object and remain on the register. If the registrar has notified your company of its intention to strike it off the register, you can obtain legal advice from a company solicitor.

A registrar might choose to strike a company off the register if, for example, the company has not met its filing or reporting obligations. Or, the registrar may have received back undelivered mail from the company’s registered office address. Or, the company may have no registered directors, in breach of company law requirements.

If the registrar is of this opinion it will have to first write two formal letters and send notice to the company’s registered office, inquiring whether the company is still carrying on business or in operation. If there is no response, or if the registrar is not satisfied with the response, he must then publish a notice in the relevant Gazette stating his intention to strike the company off the register unless he is shown reason not to do so. A copy of this notice will also be placed on the company's public record. You are advised to seek legal advice from a company solicitor at this point, if you have not already done so.

After a period of three months, if the registrar does not see any satisfactory reason not to do so, he will strike the company off the register. A further notice stating this will be published in the Gazette, at which stage the company will be dissolved.

Dissolution has a serious effect on the assets of the company any assets of a dissolved company will be 'bona vacantia' literally vacant goods and transferred in ownership to the Crown. This also means that the company’s bank account will be frozen and any credit balance transferred to the Crown.

If a company wishes to avoid this sequence of events happening, they will need to respond to the registrar’s enquiries satisfactorily and file any overdue documents along with the payment of any outstanding penalties. In the event that the striking off goes ahead, it is possible to restore the company to the register upon application, however it is essential to get legal advice from a company solicitor before doing this, as there are legal implications.

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