when it comes to striking off a company there are certain legal proceedings which a company need to follow to officially strike it off the company registrar. Failure to comply may result in serious consequence for both the company and the directors involved.
How to avoid an involuntary strike off?
when closing down a company, there is a regulated guide or checklist to follow to ensure your strike off obeys Irish company law. Irish Formations can provide assistance in this process for a standard fee.
why would a company be involuntary struck off?
Companies face a number of potential reasons to be liable for formal closure. This can involve their debts and losses and grounds for strike off may include:
- Failure to file an annual tax return.
- Notice by the revenue of an application to have a company struck off for failure to comply with revenue regulations.
- During the process of liquidation there is reason to believe that no liquidator is taking action in this manner.
- There are currently no company directors on the registrar list.
- There is reason to believe that a section 137 required bond has not been put in place or renewed.
What are the consequences of an involuntary strike off?
As previously mentioned the consequences of an involuntary strike off can have looming repercussions and can be detrimental. These consequences include:
- The state will take ownership of any property or asset belonging to the company.
- Following company closure its status of being a legal entity will cease.
- Directors lose the security of limited liability.
- Company directors will hold responsibility for the company’s debts and losses on a personal level and have to take full accountability.
- Furthermore, there can also be harsh consequences on a personal level, so for instance a disqualification order can be made against company directors. This inevitably means a ban against a company director having any involvement in the company in the future.
