Help: Capital reduction process?

[Guy Hastings]

Hi Folks,

We’re closing a husband and wife loss making limited company. We put in £2,750 each, a total of £5,500 as capital to start-up. Currently we have a loss that is bigger than the total share value.

All invoices have been paid off by the director by lending money to the company; i.e. directors loan account in credit. Hence, there are no creditors. So, we’re looking for ceasing trading by strike off.

There will be no money left in the bank account after paying off a part of directors’ loan. (I’m know that the money that was lent to the company won’t be fully recoverable.)

The company have no assets to distribute to shareholders; i.e. husband and wife.

The question is, do we still need a capital reduction process?

Any help would be greatly appreciated,

Kind regards,

Guy

 

[KAC]

Probably lot big enough to be worrying about loss relief.

If you're happy to just call it a day and you have paid everyone, just fill in a DS01 to strike the company from the register. You could have a look at the Spongebob plan which is a sticky in the insolvency forum