Part 12 – Strike Off & Restoration

3 Chapters – Sections 725 to 745

Part 12 Chapter Overview

Chapter 1 – Strike off of company

Chapter 2 – Restoration of company to register

Chapter 3 – Miscellaneous

Part 12 Summary

The reasons why a company may be struck off the Register of Companies and the procedure for restoration.

What is new?

The grounds for involuntary strike off from the Register of Companies are laid down in the Act. The structure of the notification procedure is outlined and the Act also sets out the remedial steps which a company may take to avoid being struck off. A new provision in the Act empowers the court to order a company being restored to change its name. This allows for the possibility that a new company was incorporated during the period in which the company was struck off, with the same or a similar name to the company being restored.

What is different?

The concept of a voluntary strike off has now been placed on a statutory footing and there is a distinction between voluntary and involuntary strike off. At the start of an involuntary strike off the Registrar is now obliged to write to the directors at their home address with the strike of notification. This will not affect the requirement for the notification to be sent to the registered office. The Registrar will be required to give public notice of intention to strike off a company. An administrative restoration will be known as a restoration on application to the registrar, under the new Act.

What are the Key Points?

• Voluntary strike off now on statutory footing
• Notification of strike off to be sent to directors home address
• A company being restored may be required to change its name

What do accountants need to do?

An accountant should ensure his clients are aware of the strike off regime and the consequences of being struck from the register.

What do companies need to do?

A company should be aware of the reasons the Registrar may initiate strike off proceedings and how to stop a strike off once initiated.