Dissolution of a Company

Striking off your business

Dissolution or striking off is when a company removes their company name from the official Companies House Register. This means their previous name is now available to be incorporated by another company. After your application has been submitted to the registrar the company may then be struck off the register and dissolved. A company may decide to do this if the company is no longer needed, for example. The directors may also wish to retire with nobody to hand the company down to or try to exploit the idea. When a company decides to go through with this method there are certain requirements they must meet before making the request. These consist of the company not trading for at least 3 months, if the company has not changed their name within the last 3 months, if the company is not subject to any legal proceedings of if the company has not made a disposal for the value of the property or rights. A company can only make a request to be struck off if it meets all of these requirements. The company may not also be eligible for dissolution if they have engaged in any other activity except one involving the striking off application, settling the company's affairs or meeting a statutory requirement.

Dissolution objections

It is important to know that if you want to go through with the process off being struck off it can be opposed by any interested party. These objections must be in writing and sent to the Registrar of Companies with evidence to support their claim.  For example, the objector may provide copies of invoices proving that the company is still trading. Another reason why they may submit an objection is if they feel the company has broken conditions of the application during the 3 month period where they cannot trade in or change their name. The application may also be subject to objection if certain people have not been informed, if there are any false claims from the company or if the directors have broken laws in trading or have committed tax fraud, for example.

IVA — a viable alternative?

Individual voluntary arrangements or IVAs were introduced to the UK in the 1980s as an alternative to bankruptcy for individuals who are struggling to pay off the debts that they owe.

The insolvency register

The insolvency register is held and run by the insolvency service. The insolvency registered must be maintained by law to include details of individuals that are involved in bankruptcy or certain insolvency issues.

What an insolvency practitioner can do for you

Insolvency practitioners are involved with solving an individual or company’s insolvency issues. They can provide vital information as to how is best to deal with the financial situation that they are in.