October 30th, 2012 / Insight posted in

Struck-off firm wants its money

MB writes: My company has been struck off by the Registrar of Companies and, as a result, £20,000 of cash in a bank account has been frozen. This resulted from the annual return not being filed because reminders were sent to the wrong office. How can I reinstate the company so I can obtain the cash and transfer it to a related trading company?

Many companies are struck off each year, either by the registrar or at the request of the directors, but still have assets in them, writes Jon Sutcliffe, partner at Kingston Smith. These assets are frozen and can only be obtained if the company is reinstated.

If the directors had asked for the company to be struck off, a court restoration would be required. However, where the registrar has struck off the company, as in your case, there is an alternative. There is a procedure available under the Companies Act 2006, known as an administrative restoration. This allows a former shareholder or director to have the company restored. It is then deemed to have continued in existence as if it had not been struck off the register.

This option is limited to cases where the company has been struck off for less than six years. If any property or rights belonging to the company became bona vacantia (meaning they passed to the Crown, except in Lancaster and Cornwall, where they vest in the Duchy of Lancaster and the Duchy of Cornwall), the applicant must provide the registrar with a written statement from a Crown or Duchy representative giving consent to the company’s restoration.

Finally, you will have to deliver all the documents needed to bring the company up to date and pay any penalties for late filing.

You must then make the application using a form RT01 — Application for Administrative Restoration to the Register — with a filing fee of £100.