ODCE look set to review directors of enforced Strike off companies
The number of companies that have been struck from the register in the past year is significant and the ODCE (Office of the Director of Corporate Enforcement) have decided to look at this area in greater detail going forward, according to a publication from William Fry Solicitors in November 2012.
Why would a company be struck from the register?
Failure to file its annual return in a timely fashion is the most common reason a company is struck from the register . This can occur where a company has ceased trading and the directors have forgotten to ensure that accounts are still prepared each year. It is important to note that accounts and annual returns still need to be filed for dormant companies each year.
Why are the ODCE now looking more closely at strike off companies?
The ODCE are interested in strike off companies as there is potential for those companies to have debts remaining within them. Those companies would be deemed to be insolvent at the time of strike off. The directors should have placed the company into Creditors Voluntary liquidation as opposed to simply allowing the company to be stuck off.
It is highly likely that the number of cases being brought against directors, as a result being unable to satisfy the ODCE that their company was solvent at the time of strike off, will increase during 2013 and 2014.
How do I avoid an ODCE case against my company?
It should be noted that a company has up to 12 months to take the option of anadministrative restoration to the company register. This is done though a FormH1 and costs €300. All annual returns and accounts need to be brought up to date to take advantage of this process.
Once a struck off company goes beyond 12 months it becomes a far more costly process and has to be performed through the courts.
Have you, or a colleague had strike off procedures or warning letters issued to your company? We at HSOC.ie have extensive experience with strike off and insolvency scenarios, please contact us for a free consultation.
To arrange your free consultation contact us on 01-2804731 or via our contact form on the right of this page.
Every care has been taken to ensure that the information as detailed above is correct. You must not rely on the information on this website as an alternative to advice from your Accountant, Tax Advisor or other professional services provider.