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Closing a long-dormant company

Closing a long-dormant company

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Good morning. I have recently taken on a client which has a long dormant subsidiary (formed over 60 years ago, dormant for over 25 years). Naturally the client and I are interested in closing the subsidiary down. With minimal company history to rely on, I'm slightly concerned the company could have unrecorded assets which could be lost (trademarks, investments, even land). Aside from asking the previous accountants, what would others do in this situation to find such assess, or to protect their client from potentially losing them to the Crown?

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16th May 2019 11:03

If there is nothing in the accounts I would not over worry, and just warn the client of the consequences of the accounts being wrong and failing to recognise valuable assets.

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16th May 2019 11:22

If the company doesn't have old statutory accounts, you can get them from Companies House back to the mid 1980s. They may give an idea of what assets they once had.

Turning the question around, is there any reason to believe there may be some unrecorded assets? Who does own the assets used by the company? Answering that question may help eliminate.

Even if you can't ask the previous accountants, are there people you (or the client) can ask - longer serving or retired employees? They may know that "we used to have a site there".

Ultimately, though, it's the client's decision. You can advise on the consequences and risks of closing the entity and then follow his instructions. And BTW, there was a general article on here yesterday about striking off - look under practice/general

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to paul.benny
16th May 2019 14:05

There's an outstanding charge according to companies house, dating back to 1986. I strongly suspect that's just a failure by someone to file the MR04, but it could signify something. I'm ordering the last set of full accounts from CH... Many thanks.

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16th May 2019 13:13

Surely the accounts filed as a dormant company will show any assets or have I missed something (again)

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to bernard michael
16th May 2019 14:08

Not if that asset is recorded at zero cost - e.g. a trademark. Or perhaps a lease has been transferred to the parent company but not the freehold. Or an outstanding insurance policy that could involve a payout at the end? These are the kinds of things I'm thinking about.

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