Can a company submit a DS01

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Can a limited company submit a DS01, knowing that they have ongoing litigation againist them?  Also trying to dispose of assets before dissolution.

Is this in breach of the Companies Act?

An objection has been filed in any how.

 

 

Replies (20)

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By David Ex
24th Jul 2022 17:40

I’d make sure I had legal advice on the matter, just to be on the safe side.

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By Paul Crowley
24th Jul 2022 18:19

If you are owed money by these crooks then object and take matters to court urgently, but only if you have make a sensible commercial decision.
DS01 means all creditors should be advised of the attempt to evade payment
But real life means that Companies House just do not give a damn

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By vision001
24th Jul 2022 19:48

Yes it does seem that Companies House enforce nothing... And even the Land Registry want nothing to do with transferring assets.

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By legerman
24th Jul 2022 20:15

If there are current legal proceedings , then the Director(s) can't submit a DS01.
https://www.legislation.gov.uk/ukpga/2006/46/section/1005

If the Director(s) have already done this. I would actually inform Companies House that they have dishonestly filed a DS01 rather just an objecting to the strike off.

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Replying to legerman:
David Winch
By David Winch
24th Jul 2022 21:19

With respect, I would not think s1005 prevents the directors from filing a DS01 simply because the company is being sued in the civil courts. I think s1005 is directed towards a company that is in administration or being wound up.
However if the company has been trading or disposing of assets within the previous 3 months you may have a valid objection under s1004.
David

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Replying to davidwinch:
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By vision001
24th Jul 2022 22:07

davidwinch wrote:

With respect, I would not think s1005 prevents the directors from filing a DS01 simply because the company is being sued in the civil courts. I think s1005 is directed towards a company that is in administration or being wound up.
However if the company has been trading or disposing of assets within the previous 3 months you may have a valid objection under s1004.
David

Yes the company is transferring the freehold asset which is currently still pending (TR1) with HMLR.

When you say " you may have a valid objection under s1004"

Can I object to HMLR as I have already objected to Companies House based on ongoing litigation. Also is the company in breach of sec. 1004 and what action can be taken?

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Replying to vision001:
David Winch
By David Winch
24th Jul 2022 22:31

I do not think the Land Registry would be interested. There is nothing wrong with the company disposing of the property. The wrong thing is the filing of the DS01. They should wait until 3 months after the property sale before filing the DS01. If they resubmit the DS01 in 3 months I doubt you would then be able to object to it.
In practice Companies House may pause the dissolution until the 3 months has passed.

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Replying to davidwinch:
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By vision001
24th Jul 2022 23:12

Thanks for the response.

I will explore that with Companies House and see what they say.

Thanks

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By Leywood
25th Jul 2022 08:46

No a company cannot submit a ds01.

Companies don’t. Directors do.

Of course, they could well be trying to dispose of assets to be able to pay off their liabilities.

Most companies would dispose of assets before dissolution, they would be stupid not too, otherwise her Maj gets them.

Suggest you take some legal advice rather than relying on just contacting Co House, as they are about as bad as HMRC at getting stuff done.

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paddle steamer
By DJKL
25th Jul 2022 10:48

No idea what it is called in E & W but in Scotland if there is a debt due by the company that can be proved an Inhibition can be a useful tool.

https://www.lexology.com/library/detail.aspx?g=91a3f59a-b340-44bd-b52c-1....

Check your options with a solicitor.

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By vision001
23rd Aug 2022 13:14

Update:

The Company has now used Business Rescue to liquidate the company, thus bypassing the suspension of the compulsory/voluntary strike off.

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Replying to vision001:
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By Hugo Fair
23rd Aug 2022 13:49

Sounds like a testimonial for https://businessrescueuk.com/ ... even if that's not what you intended.

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Replying to vision001:
paddle steamer
By DJKL
23rd Aug 2022 13:50

So make a claim to the liquidators.

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Replying to vision001:
paddle steamer
By DJKL
23rd Aug 2022 14:35

They do not do insolvencies per their website.

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By vision001
23rd Aug 2022 15:20

Business Rescue stated in the letter to me "The board of the company, having regard to its financial position, have decided to commence liquidation proceedings. A firm of practitioners have been asked to assist in convening of the virtual meeting of creditors and a preparation statement of affairs for presentation at the meeting.

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Replying to vision001:
paddle steamer
By DJKL
23rd Aug 2022 15:26

Well, make a claim if worthwhile. Catch will be substantiating any claim, if not yet proved/provable via a contract/ court process liquidators will likely not recognise claim or pay anything and even if proved you may only get pennies in the pound, if that. It is a possible/likely good money after bad position.

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Replying to vision001:
paddle steamer
By DJKL
23rd Aug 2022 15:26

Well, make a claim if worthwhile. Catch will be substantiating any claim, if not yet proved/provable via a contract/ court process liquidators will likely not recognise claim or pay anything and even if proved you may only get pennies in the pound, if that. It is a possible/likely good money after bad position.

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By vision001
23rd Aug 2022 16:11

Yes I agree with this:

Well, make a claim if worthwhile. Catch will be substantiating any claim, if not yet proved/provable via a contract/ court process liquidators will likely not recognise claim or pay anything and even if proved you may only get pennies in the pound, if that. It is a possible/likely good money after bad position.

Can a creditor or interested third party suspend or stop the liquidation? Liquidating the company will mean company (property development) not meeting it's obligations e.g. planning enforcement or party wall issues.

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Replying to vision001:
paddle steamer
By DJKL
23rd Aug 2022 16:37

Possibly not, but will not any successor to the title to the property, once sold by the liquidator, not require to honour these obligations?

How are the obligations formed , are they perchance in a section 106 agreement (Section 75 up here) and therefore effectively attached to the property title and binding upon any successor in title. (Afraid I am not very good at English property law but I do a fair bit of work re Scottish property and planning)

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By vision001
23rd Aug 2022 17:00

You seem knowledgeable to me and get where I am coming from.

The successor to the title to the property has been indemnified by the potential predecessor. So from what I understand if the predecessors has liquidated the company who is then liable? Is there a way to stop the liquidation and return its control back to the directors/company?

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