There are two sets of restrictions on voluntary strike off of a limited company. Voluntary strike off procedure cannot happen if the company has been engaged in certain activities consistent with trading in the last three months or if other legal processes have not been completed.
Activities That Prevent Voluntary Strike Off
Under Section 1004 of the Companies Act 2006, the following activities within the last three months would prevent the directors from voluntarily striking off the company:
- Changed its name.
- Traded or conducted a business activity (not including payment of a liability incurred during trading).
- Made a disposal of company assets just before the trading of the company ceased, which were part of the company’s normal trading activities, intending to produce a profit.
- Engaged in any activity other than needed to enable the voluntary strike off.
- Engaged in activities other than those needed for compliance with a statutory obligation.
- Involved itself activities other than those required to conclude the company’s affairs.
- Such activities other than those stipulated by the Secretary of State.
Proceedings Not Concluded That Prevent Voluntary Strike Off
Under Section 1005 of the Companies Act 2006, there are restrictions on companies with debts being voluntarily struck off when:
- A company voluntary arrangement (CVA) has been proposed.
- A company is in administration.
- It is being wound up and placed into either creditors voluntary liquidation (CVL) or compulsory liquidation.
- An application to the Court has been made for a Part 26A Companies Act 2006 restructuring plan.
It is a criminal offence to make a voluntary strike off application that fails to comply with these restrictions.
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This page is not legal advice and is not to be relied upon as such. This is provided for information purposes only. You should take independent advice on the facts of your case. No liability is accepted for reliance upon this post.
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