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