Administrative restoration possible or not?

Company struck off for non-filing of accounts - Court order or Administrative restoration?

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A particularly distracted client got his company dissolved for non-filing of accounts. There was money in the bank account.

The last filed accounts showed movements arising from the results of trading - but the trade itself ceased at the end of that period. The client doesn't appear to have changed the SICC code at Companies House, which currently indicates an activity being carried out (I.e. not 99999 dormant) but since the last year end reported on, I think there will only be some minor movements relating to the overheads of a no longer trading company - e.g CS01 fees etc.

As Companies House struck the company off, I would usually do an Administrative restoration but I'm aware that the company has to be "active" to do so. Otherwise it's a court order. The language isn't particularly helpful with the website stating that an admin restoration is possible if the company was "trading at the time it was dissolved". However the detailed CH publication actually says "an application for restoration may be made if it meets the following conditions: it must have been carrying on business or in operation at the time it was struck off".

To me, trading and "in operation" are two different things. I can operate a ltd company and meet my obligations to file and pay overheads, but not be trading or in business at the time.

With that in mind, would an administrative restoration fail? How do Companies House determine if the company is active or not to meet the requirements for an administrative restoration?


Replies (5)

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By Roland195
03rd Oct 2023 09:45

I am afraid I don't know the correct answer - active may be another context dependent term but I would be amazed if the Admin Restore was not successful. How would anyone know the Company has ceased to trade (if that is even relevant)?

I had a similar case a few years ago where a client set up a company for a proposed venture, stuck some money in the bank account then forgot all about it as it never got off the ground. No issues at all with the Admin. Restore or getting the cash back from Prince Charles at the time.

Thanks (1)
By JCresswellTax
03rd Oct 2023 09:56

Do folk really update SIC codes when the company is dormant? Cant think of anything more pointless...

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By thestudyman
04th Oct 2023 08:33

How much money was left in the bank accounts?

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Replying to thestudyman:
By norstar
04th Oct 2023 09:26

Certainly enough to make either route worthwhile and enough to teach the client a lesson!!!

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By norstar
04th Oct 2023 09:27

Grateful for the "real world" answers thus far. Ultimately, I suppose if the admin restore was unsuccessful in any way, it would still leave the court order approach so maybe we'll go for that route.

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