We are receiving lots of calls from company directors whose companies are no longer viable, stating that their accountant has tried to dissolve the company, but it has been rejected. I am sure they are in the minority but if your client has an outstanding Bounce Back Loan the lender will NOT allow the company to simply be dissolved.
This is because the lender can only recover the money from the government IF AND WHEN the company enters a ‘formal insolvency process’ such as voluntary liquidation. If the lender allows the company to be dissolved it will not be repaid by the government. The lender must issue a demand for repayment and if not repaid in full can issue a winding-up petition in court (from this Friday 1st October for debts over £10,000)