Has your Company been struck off the register? Or have you an unresolved claim against a company that has been struck off? These are scenarios where you may be considering your options and thinking about restoring a company to the register.
There are two routes for restoration- administrative and by order from the Court, with the latter option often being more expensive and complex. Restoration, however, is worth considering, especially where the company had title to an asset when it was struck off. The biggest reason for this is that when a Company has title to an asset at the time of strike off, the asset is vested in the Crown and the Company, having ceased to exist, no longer owns or has access to that asset. That asset is essentially lost.
The circumstances in which a Company may be restored by Court order or by administrative restoration differ and may be excluded to you depending on various factors, including the reason why the company was struck off, or who you are in relation to the Company. For instance, were you a Director or member of the Company?
When considering why the company was struck off, it is also important to give thought to the implications of restoration. For example, if one of the reasons for strike off was because the Company failed to file its accounts on time, the Company will be required to file them and may also need to pay a fine or penalty for the late filing. Regardless of the route taken to restoration, the effect of it will essentially mean that the Company is deemed to have continued in existence as if it had not been struck off or dissolved. It is also important to remember that where a creditor had security over a company asset before strike off, the security still remains valid.
Taking steps to prevent strike off is also important, as is seeking advice before or after strike off. At Ramsdens, our specialist Commercial Dispute Resolution team regularly advises Directors, members and creditors on all aspects of Company Law, including dissolution, liquidation and company restoration. Whatever the nature of your enquiry call Ramsdens Solicitors for expert advice. Get in touch with us by calling 01484 821 500, or by email at info@ramsdens.co.uk to speak to one of our trained solicitors.