Compulsory strike-off action has been suspended

[Jean P]

Hello,
Great to join this community and I hope I'm able to contribute as a member.

I had a small company which unfortunately was heavily effected during covid and the BBL was unable to save the business from going under. Notice for compulsory strike-off served in Nov 22 and Compulsory strike-off action has been suspended in Dec 22. No new updates since and I'm still active as the sole director.
What steps do I need to take and do I need to resign as director ?

Many thanks

 

[Elliot Green]

Hello,
Great to join this community and I hope I'm able to contribute as a member.

I had a small company which unfortunately was heavily effected during covid and the BBL was unable to save the business from going under. Notice for compulsory strike-off served in Nov 22 and Compulsory strike-off action has been suspended in Dec 22. No new updates since and I'm still active as the sole director.
What steps do I need to take and do I need to resign as director ?

Many thanks

A company must have at least one director:

By virtue of Section 154 of the Companies Act 2006 a company can have one director:

(1) A private company must have at least one director.
(2) A public company must have at least two directors.

You continue to have obligations to file accounts and other compliance responsibilities.

You might wish to wind up the company through voluntary liquidation if it has no viable future. This will formally close down the company once and for all.

If you want to discuss this our details are below.

 

[Lisa Thomas]

Hello,
Great to join this community and I hope I'm able to contribute as a member.

I had a small company which unfortunately was heavily effected during covid and the BBL was unable to save the business from going under. Notice for compulsory strike-off served in Nov 22 and Compulsory strike-off action has been suspended in Dec 22. No new updates since and I'm still active as the sole director.
What steps do I need to take and do I need to resign as director ?

Many thanks

What happened to the company's assets? Do you owe an overdrawn directors loan account?

 

[japancool]

Do you have an outstanding BBL?

 

[UK Contractor Accountant]

And what was the BBL used for?

These threads are littered with Directors who have used the BBL to fund their own lifestyle & pay personal bills.

 

[Elliot Green]

And what was the BBL used for?

These threads are littered with Directors who have used the BBL to fund their own lifestyle & pay personal bills.

It was permissible to pay salary and taxes from BBL monies that would fund lifestyles.

The grey area (that is not so grey as generally considered an impermissible deployment of BBL funds) but which is not replete in evidence in the disqualification listings, was the alternative lifestyle funding approach of dividends.

 

[Jean P]

Do you have an outstanding BBL?

Yes - no other creditors apart from myself.

 

[ChrisCallaghan]

Hi @Jean P ,

Just reviewing threads and noticed this had not been followed up.

The short answer is that dissolutions/strike offs (either compulsory or voluntary) are not presently going through whilst there is an outstanding BBL - this has been the state of play since late 2020. The bank and/or government as the BBL guarantor (via the Department of Business & Trade) will continue objecting indefinitely.

For now you have two options:

1. Do Nothing: You could legitimately choose to do nothing further. Your company will continue to exist in its current limbo state, and you will technically have all the legal duties that come with being a company director. So long as the company exits, debt enforcement activities can continue, however this is typically minimal with BBLs and the banks preferred collection agents, and they are prohibited from carrying out any doorstep collection action. Please also remember that you are not personally liable for the BBL. In the long run you will be waiting on a change in government policy to see your company closed - this could be next year, it could be in 10 years - no one can say.
2. Voluntary Liquidation: If you would prefer to see the company closed sooner, you could instruct a firm of licensed insolvency practitioners to close your company through a formal liquidation. This cannot be objected to, with any debt collection actions ceasing once the company is in liquidation, however there will be a fee for professional services.

Both of the above options are perfectly valid, and if you would like to discuss either or both, I'm happy to offer you my time on a free advice call. Either DM me or contact me using the details in my post's signature.

 

[ChrisCallaghan]

What steps do I need to take and do I need to resign as director ?

I would recommend against this, as leaving your company without a director would put it in breach of the Companies Act 2006.

 

[Lisa Thomas]

Hi @Jean P ,

Just reviewing threads and noticed this had not been followed up.

The short answer is that dissolutions/strike offs (either compulsory or voluntary) are not presently going through whilst there is an outstanding BBL - this has been the state of play since late 2020. The bank and/or government as the BBL guarantor (via the Department of Business & Trade) will continue objecting indefinitely.

For now you have two options:

1. Do Nothing: You could legitimately choose to do nothing further. Your company will continue to exist in its current limbo state, and you will technically have all the legal duties that come with being a company director. So long as the company exits, debt enforcement activities can continue, however this is typically minimal with BBLs and the banks preferred collection agents, and they are prohibited from carrying out any doorstep collection action. Please also remember that you are not personally liable for the BBL. In the long run you will be waiting on a change in government policy to see your company closed - this could be next year, it could be in 10 years - no one can say.
2. Voluntary Liquidation: If you would prefer to see the company closed sooner, you could instruct a firm of licensed insolvency practitioners to close your company through a formal liquidation. This cannot be objected to, with any debt collection actions ceasing once the company is in liquidation, however there will be a fee for professional services.

Both of the above options are perfectly valid, and if you would like to discuss either or both, I'm happy to offer you my time on a free advice call. Either DM me or contact me using the details in my post's signature.

Compulsory liquidation/winding up via the court is also an option.

 

[ChrisCallaghan]

Compulsory liquidation/winding up via the court is also an option.

Sorry Lisa, you are quite right - I have forgotten to include that in my summary.