Companies can disappear from the official register for the most innocent of reasons. Whether the directors failed to file accounts on time, or whether it was a conscious decision to close the Company, once a company ceases to exist it is no longer able to deal with any of its assets.
This can create a variety of issues where the company intends to continue trading, or valuable assets remain in company ownership. A dissolved company’s bank account may not be available for use. Not only will this prevent the smooth receipt of payments, but any balances will be unavailable for use.
Land and property owned by a dissolved company cannot be sold, charged, or properly dealt with. Such an issue will cause an abrupt halt to any conveyancing transaction until the problem is addressed.
An often neglected consideration is that a dissolved Company cannot bring a claim in the courts, which could close the door to litigation and the recovery of damages.
Officially, all assets owned by a dissolved company revert to Crown ownership under the bona vacantia rules, but thankfully there are options available if you find yourself in this situation.
Depending on the circumstances leading to the strike-off there are two main routes available to restore the Company to the register. Provided that certain conditions are met, administrative restoration is a relatively quick and simple route provided by the Companies Act 2006. In contrast, a formal application to the Companies Court is a lengthier and more costly process.
The Corporate team at Wortley Byers Law has extensive experience in restoring companies to the register. We can give an initial overview of what is required and a realistic assessment of how much it will cost, and how long it might take. Statutory time limits apply, so if you have found yourself in this unfortunate position, contact us without delay.