Companies House - just throwing money away !!!

I had assumed (incorrectly) that when a company voluntarily seeks to be struck off that it needs to have settled all its debts and brought its affairs up to date.   However, Companies House make it very clear in their guidance that " the registrar will not normally pursue any outstanding late filing penalties unless you restore the company to the register at a later stage".

This makes no sense to me whatsoever for a number of reasons:

1) It is in Companies House gift to Strike-Off a company.  Why would it do so if money is owing. 

2) Companies House like all public sector organisations are subject to the tight budgets and therefor any additional revenue is surely welcome.

One suggestion should be, the default position: that Companies House refuse to Strike Off unless payment of all outstanding fines are paid.   Perhaps there needs to be exceptional circumstances (ie the sole director and shareholder has been declared bankrupt etc).

What are your thoughts?

 

Andrew is a director of www.wisteriaformations.co.uk - Registering Companies.

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Andrew Millet BA FCA MBA is a Director of Wisteria Chartered Accountants, Tax & Business Advisers. He specialises as a business consultant and part-time finance director for a number of Wisteria's clients, which involves writing business plans, implementing systems and discipline, financial control work, cash management, reporting to the board, providing management information, liaising with investors and fund raising.