Free Advice for Company Directors After Strike Off Objection
Has your company strike-off application been objected to or suspended?
If you have applied to close your company and Companies House has paused the strike-off, an objection may have been received from HMRC, a lender, supplier, landlord or another interested party.
This does not necessarily mean the company can never be closed. However, the reason for the objection needs to be understood and dealt with before deciding what to do next.
DCA Business Recovery can help you establish why the strike-off has been stopped, whether the company is solvent or insolvent and whether a Creditors’ Voluntary Liquidation (CVL) may be a more appropriate route.
Call DCA Business Recovery on 01702 344558 for a free, confidential initial discussion.
How a Strike-Off Application Can Lead to a Strike Off Objection
Why Has My DS01 Been Suspended?
A strike-off application may be suspended when a creditor or other interested party successfully objects to the company being dissolved.
Common reasons include:
- unpaid HMRC liabilities;
- outstanding loans or Bounce Back Loans;
- unpaid suppliers or landlords;
- unresolved legal claims;
- missing tax returns or other outstanding company affairs.
The important question is not simply who objected, but why they objected and whether the underlying issue can be resolved.
Can I Apply for Strike-Off Again?
Possibly, but simply submitting another application without resolving the original issue may lead to another objection.
Before reapplying, establish:
- who objected;
- what debt or issue remains outstanding;
- whether the company can pay its debts;
- whether the company has assets;
- whether HMRC or another creditor is likely to object again; and
- whether formal liquidation would be more appropriate.
Repeated applications do not solve an unresolved insolvency problem.
Is Strike-Off Still the Right Option?
Strike-off can still be appropriate for a company that has stopped trading and has properly dealt with its affairs.
It may be unsuitable where:
- the company is insolvent;
- HMRC or other creditors remain unpaid;
- a Bounce Back Loan remains outstanding;
- assets still need to be dealt with;
- there are unresolved disputes; or
- creditors have already objected.
GOV.UK also confirms that a company cannot use the ordinary voluntary strike-off route where it is threatened with liquidation or has certain creditor arrangements in place.
When Might a CVL Be a Better Option?
If the company cannot pay its debts and there is no realistic prospect of recovery, a Creditors’ Voluntary Liquidation may provide a more appropriate way to close the company than repeatedly applying for strike-off.
A CVL formally deals with:
- company assets;
- HMRC and other creditors;
- employees;
- director’s loan accounts;
- company records; and
- the company’s final closure.
Frequently Asked Questions
Yes. If your DS01 has been suspended, paused or objected to, it is sensible to take advice before reapplying, ignoring the objection or making further decisions.
It depends on the company’s position. If the company has no debts, no assets and no unresolved matters, strike-off may be suitable. If the company cannot pay its debts, voluntary liquidation may be a more appropriate way to close the company formally.
An outstanding Bounce Back Loan can result in a strike-off application being objected to, particularly if the lender or another party believes the company still has unpaid liabilities.
Yes. HMRC can object to a strike-off application if they believe tax remains outstanding or there are unresolved tax matters.
You may be able to apply again, but if the reason for the original objection has not been dealt with, there is a risk that the application will be objected to again.
If an objection is accepted, the strike-off application is suspended and the company remains active on the Companies House register. The company is not dissolved, and the directors remain responsible for dealing with the company’s position.
