A recent article in the Irish Independent highlights the potential consequences when a company fails to meet its statutory obligations, resulting in involuntary strike off
In this example of involuntary strike off the company continues to trade. Below we have highlighted the potential penalties company directors can face in light of their decision to continue to trade having been struck off the companies register:
Involuntary Striking Off – unpleasant consequences:
- the company assets become the property of the state on dissolution of the company
- the company ceases to exist as a legal entity with effect from the date of strike-off and dissolution
- the protection of limited liability is lost with effect from that date and should the business continue to trade the owners are trading in their personal capacity
- There can also be unpleasant consequences for directors of such companies in that a disqualification order may be made against them by the High Court on the application of the Director of Corporate Enforcement
The CRO have grounds for striking off a company if it fails to file an annual return for one year.
The CRO have a clearly defined procedure for striking off a company in Ireland:
- CRO issue reminder letters to non-compliant companies
- CRO issue only one statutory strike-off notice
- One month after issue of strike-off to the companies registered office, a notice of impending strike off is inserted in to the CRO gazette unless all outstanding returns have since been filed OR the outstanding statement (form 11FCRO)have been delivered to Revenue
- One month after strike off notice published, the company will be formally struck-off [unless all outstanding returns have since been filed OR the outstanding statement (form 11FCRO)have been delivered to Revenue]
- Once the company is struck off the register, a notice dissolving the company will appear in the CRO Gazette
It should be clearly understood that the liability (if any) of every director, officer and member of the company continues, after the company has been dissolved and may be enforced as if the company had not been dissolved.
As the above illustrates the potential consequences for involuntary strike off are unpleasant. If you have a company that has ceased to trade, never traded or has failed to file returns with Revenue and CRO you should talk to a professional advisor at the earliest opportunity to review your options and choose an appropriate course of action.
At closedforbusiness.ie we specialise in helping companies through the striking off process and company liquidation at very competitive rates. Please contact our company strike off team on 1890 256 733.
You can see the full article on involuntary strike off here.