Definition
Compulsory strike-off is when Companies House removes a company from the register because it has reason to believe the company is no longer carrying on business, usually after accounts or confirmation statements go overdue. Companies House publishes a First Gazette notice in The Gazette. Unless the missing filings are made or someone objects, the company is dissolved after at least 2 months and its assets pass to the Crown.
How it can be stopped
- The company files the overdue accounts or confirmation statement. Bringing filings up to date normally stops the process.
- Creditors and others with an interest can object, to protect money they are owed.
What happens if it goes ahead
- The company is dissolved and its bank accounts can no longer be used.
- Money and property still in its name become bona vacantia.
- If the company was still in business, a former director or shareholder can apply for administrative company restoration within 6 years, after filing the missing documents and paying any penalties.
An overdue confirmation statement is a common trigger, covered in SmartFiling’s guide to what happens when a confirmation statement is overdue; failing to file one is an offence. Overdue accounts also bring late accounts penalties whether or not strike-off follows.
Related questions
- What is a First Gazette notice for compulsory strike-off? The public warning that Companies House intends to strike the company off and dissolve it after at least 2 months.
- What happens if I file my company accounts late? The company gets an automatic penalty of £150 to £1,500, doubled if it was also late the year before.
Related terms
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Companies House late filing penalty
A Companies House late filing penalty is an automatic civil penalty charged to a company whose annual accounts arrive after the filing deadline.
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Bona vacantia
Bona vacantia means "vacant goods", the legal term for ownerless property that passes to the Crown.
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Company restoration
Company restoration brings a dissolved company back onto the Companies House register.
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Confirmation statement
A confirmation statement (form CS01) is the filing in which a company confirms that the information Companies House holds about it is correct, such as its officers…
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