In certain circumstances, it may be appropriate for a company to consider an application for striking from the register (dissolution) at Companies House.
Dissolution applications are considered at sections 1003 – 1008 of the Companies Act 2006. It is not a formal insolvency process and can be considered when a company has insufficient funds with which to fund the cost of a formal procedure.
Dissolution may be appropriate if the company has not for the previous three months:
• traded or otherwise carried on business
• changed its name
• disposed of property or rights for gain in the normal course of trading
• engaged in any activities other than considering and making the application, concluding the affairs of the company and dealing with any statutory requirements and any requests of the Secretary of State for Trade and Industry
We are able to write to creditors, employees, directors, shareholders and pension fund trustees with the required financial information advising of the company’s position. We invite creditors to petition to wind up the company and advise that in the absence of a petition, the company intends to apply for dissolution.
We also liase with the Companies House and submit the necessary financial information and forms to begin the dissolution process. The Registrar advertises the company’s application in the London Gazette.
Striking from the register usually takes place around 3 to 6 months from the application.
It is possible for creditors to object to the dissolution of a company, it is also possible for a dissolved company to be restored to the register so that a formal insolvency process can take place.
For more information on dissolution applications, please contact Bailams.