Companies House has recently automated its Company strike-off procedures with the result that some Companies are now being struck-off the register at an earlier stage than might previously have been the case.
A common cause for this happening unexpectedly is a failure to file a Company’s annual return. This document, which provides a snapshot of the current shareholdings and appointments of the Company on the date it is made up to, is sometimes confused with the Company’s annual tax return. This has led to Company Directors ignoring the reminders they receive from Companies House in the belief that their tax advisor will be dealing with this.
This could prove an expensive mistake! Having a Company struck-off unexpectedly can be very inconvenient as it can be a time-consuming and costly process to reinstate the Company once this has happened.
Companies House issues reminders about the annual return and sends copies of the final default letter to the Directors’ addresses. If after sending these reminders Companies House hears nothing, it assumes the Company is defunct and will start the strike-off procedures.
Directors are therefore advised to ensure:
For further information, please contact Jonathan Waters on 0191 232 8345 or email firstname.lastname@example.org.
This article is not legal advice; it is intended to provide information of general interest about current legal issues. Please contact us to discuss how the contents of the article may affect you.