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Company dissolved, bank account still open with funds

Company dissolved, say, 10/10/09. Funds transferred to accountant's 'client account' that day. Accountant pays company liabilities from those funds the following day. Any problems?

What about any subsequent receipts into company account over, say, the next few days? Bank account not frozen. Funds transferred to accountant's 'client account' and, again, pays company liabilities. Any problems?

Thanks.

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14th Oct 2009 11:11

Any problems?
I should say so.
All such matters should be sorted before the company is struck off. Any assets not distributed eg. bank balance belong to the Crown. The company does not exist and has no power to transfer monies to you in future.

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By Anonymous
14th Oct 2009 12:11

Messy

Agree with Skylarking - check http://www.bonavacantia.gov.uk/output/BVC16-Banks-and-other-Financial-Institutions-about-Cash-Balances-belonging-to-dissolved-companies.aspx

Inverted commas around client account - does that mean it's not a client account?

If you are the accountant then you seem to be opening yourself up for all kinds of problems.

No doubt there's a MLR angle here as well.

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14th Oct 2009 15:08

ML Report needed now

Even if it is you.

The accountant needs to send a cheque (from office) to the Treasury and will then need to try and get the payments from client account back if possible

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By Anonymous
14th Oct 2009 15:24

How about transfers pre-dissolution?

Thanks for the replies - very helpful.

Understand about any payments subsequent to dissolution, but how about a payment into the Client Account the day BEFORE dissolution? Would that be subject to ML rules, etc.? Would have thought that would be OK because the company was still 'alive'.

Thanks

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14th Oct 2009 15:35

When did the company cease trading?

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By Anonymous
14th Oct 2009 15:45

It hadn't.

It hadn't ceased trading.

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14th Oct 2009 16:26

Whoops!
If the company applied for striking off to Companies House the director would have signed a statement that the company had not traded in the preceding 3 months. If the company carried on trading regardless I would suggest that a criminal offence has been committed.

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By Anonymous
14th Oct 2009 16:42

That wasn't the case

No, that didn't happen. It was non submission of the Annual Return.

Will the transfer the day before striking off be a problem?

Thanks.

 

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By Anonymous
14th Oct 2009 17:03

Just to clarify the precise circumstances.

12/10/09 - funds transferred into accountant's client account

12/10/09 - cheques written out to employees and suppliers, etc.

13/10/09 - company dissolved due to non submission of Annual Return

14/10/09 - funds received into dissolved company's account (nb. account not frozen)

My thoughts are that the transactions on 12/10/09 are fine, and that the monies subsequently received into the dissolved company's bank account must be left well alone.

Is the accountant at fault for accepting the funds on 12/10/09 and paying out the same day? I would have thought not because the company was still 'alive', despite it being close to the wire! Is there any need to prepare a ML report and, if so, in connection with which transaction?

Just trying to make the best of a bad job.

Thanks.

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By Anonymous
14th Oct 2009 17:25

Hang on

Funds post strike off must be left well alone - you have already told us that they weren't so those transactions must be reportable.

Potentially all of these are reportable - fraudulent preference comes to mind. Would one of the liabilities settled happen to be accountant's fees?

This all sounds very murky, with the accountant complicit.

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By Anonymous
15th Oct 2009 08:08

No accountant's fees involved

There are no accountant's fees involved. The aim is to pay out suppliers.

I understand that a MLR must be made out for transactions occuring ON OR AFTER the date of dissolution. Is it right that there is no MLR required for transactions occuring BEFORE the date of dissolution (i.e. the first transfer to the client account the day before, subsequently paid out to suppliers)?

I know it is a mess, but just want to find out the most practical way of dealing with. Many thanks again.

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15th Oct 2009 10:45

Should have paid to Treasury on 13 October

As I understand it the balance on the Client account at 13 October is due to the Treasury immediately. If the accountant has made payments after that date then he needs to immediately reimburse client account from office and pay balance over to Treasury

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