Companies House, Compulsory Strike Off, meaning?

[BonzoDog]

Good morning. I am looking into going into a business with a colleague.
I have had a look into his other business's in that he has named as a Director or owner, on Companies House. On Each of the 5 of them is listed that they have repeatedly received a First Gazette, Compulsory Strike Off warning. And then later in each case that the Action has been Discontinued. I am not familiar with what a such a warning is about. Does it signify something worrying is going on? The warnings do not coincide with deadlines for returns, nor are they repeated on the same period each year. They do happen annually in every case. I've asked the person if it is something to be concerned about and he has said it is just a standard means to force debts to be paid. Is the fact that of these warnings anything to be concerned about?

 

[WaveJumper]

Run the other way as fast as you can

 

[Mark T Jones]

If it happens repeatedly, it tells you that they are very sloppy with admin and accounting. If you don't have these things in place, it is likely to become a problem for you.

If you do have them in place, there are other questions.

 

[japancool]

he has said it is just a standard means to force debts to be paid.

Let's suppose this is true. It would mean that he has allowed debt to escalate to the point where it's gone beyond letters. Is that the kind of person you want to be a director with?

 

[Mark T Jones]

Let's suppose this is true. It would mean that he has allowed debt to escalate to the point where it's gone beyond letters. Is that the kind of person you want to be a director with?

Yes - I'd missed that bit.

Agree - get your running shoes on..

 

[bovine]

If it was for not putting in the annual return on time, thats one thing and is a simple admin error. But hes said its for enforcing debt, which is a something else entirely and as others have said very concerning. Gut feeling is going into business with them will not end well!

 

[Newchodge]

If it was for not putting in the annual return on time, thats one thing and is a simple admin error. But hes said its for enforcing debt, which is a something else entirely and as others have said very concerning. Gut feeling is going into business with them will not end well!

I would want to be very, very clear why he had to be forced to pay debts - cashflow, sloppiness, stupidity? Then consider whether you can work in partnership if you have to ensure the bills are paid on time while he doesn't care about it. For me he would have to be bringing something exceptional to the table for that to be worthwhile.

 

[Lisa Thomas]

he has said it is just a standard means to force debts to be paid.

That suggests his companies have all been on the brink of insolvency, and he has let it go to the wire, which is extremely concerning.

 

[DontAsk]

Once, maybe give him the benefit of the doubt if he learned from his mistakes.

Five companies - he's a chancer and should be avoided at all costs.

 

[David Griffiths]

I've never come across Companies House threatening to strike off a company for unpaid debts. It's usually up to the creditor to start, or threaten, winding up proceedings. Section 9.1 at this link sets out reasons that the registrar may strike off a company, and debt is not one of them. If anybody has come across strking off for debt, I will bow to their knowledge.

In my experience, such a notice is issued by Companies House if documents are seriously overdue for filing - nealy always accounts or annual returns/confirmation statements. You can check this by looking at the filing history and the dates that the documents were actually filed. Repeated notices in several companies suggests a chancer who doesn't care about complying with his obligations. The same attitudee towards taxes can lead to similar issues, but they aren't on the public record.

The advice to run away from any involvement is correct

 

[BonzoDog]

I've never come across Companies House threatening to strike off a company for unpaid debts. It's usually up to the creditor to start, or threaten, winding up proceedings. Section 9.1 at this link sets out reasons that the registrar may strike off a company, and debt is not one of them. If anybody has come across strking off for debt, I will bow to their knowledge.

In my experience, such a notice is issued by Companies House if documents are seriously overdue for filing - nealy always accounts or annual returns/confirmation statements. You can check this by looking at the filing history and the dates that the documents were actually filed. Repeated notices in several companies suggests a chancer who doesn't care about complying with his obligations. The same attitudee towards taxes can lead to similar issues, but they aren't on the public record.

The advice to run away from any involvement is correct

Yes, having looked closer I now think you are correct. The notice to strike off is always on all occasions after a filing hasn't happened on time, whether it be the accounts, or statement. And it is repeated every year for all of his business's. There is also a lot of changing directors and changing addresses etc. Maybe that's all normal, but I'm not sure.

 

[japancool]

Yes, having looked closer I now think you are correct. The notice to strike off is always on all occasions after a filing hasn't happened on time, whether it be the accounts, or statement. And it is repeated every year for all of his business's. There is also a lot of changing directors and changing addresses etc. Maybe that's all normal, but I'm not sure.

Which means he's being deceptive towards you.

 

[Mark T Jones]

There is also a lot of changing directors and changing addresses etc. Maybe that's all normal, but I'm not sure.

Nope

Massive red flag

 

[WaveJumper]

To be honest I seriously can't believe you were even considering the proposition. Its bad enough when good friends, family members, colleges start companies all as "good friends" and twelve months down the road all falling out, the forum is full off threads with people asking for advice and away to get out.

If you can't spot the red flags now and trust your intuition from the get go I would suggest your in for a rocky road ahead.

@Mark T Jones running shoes with spikes maybe a better option then trainers here

 

[Paul Kelly ICHYB]

It could mean that they were bad with paperwork, leaving everything to the last minute.

Or they started businesses, did nothing with them and just let them run their course (which could be a bad sign if there was debt in the company).