Restoration of Company by court order

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Hi Folks,

A director/shareholder Ltd company who ceased trading decided to take it upon themselves to strike their own company off the register via a DS01 form. This in its self is no major issue - apart from they did not understand the consequences of such action and failed to empty the bank account which had appx 2.5k in! They were saving this for a rainy day and it did not once occur to them that it wasn't their money. Anyhow, now the client has come to us and asked them to bail them out of the situation. An Administrative Restoration is not available as DS01 was filed, so therefore the only option is via the courts to reclaim the assets of the company.

Having read the guidance notes on such procedures I must admit they look a little overwhelming, my question is have any accountants had previous experience in this area or is it something that should be outsourced to a solicitor? Any help appreciated.

 

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By fawltybasil2575
24th Dec 2019 13:56

@ Gasref95 (OP).

Noting that this is a Court Order restoration case, I would respectfully suggest that this is a matter which is "food and drink" to specialists.

I would simply suggest to the person who has consulted you (strictly, very probably no more than a director of your FORMER client company) that they may wish to google "Company Restorations", as this would provide that person with links to many such specialists (the specialists' fees will be advised to the former client company at the outset), and that you are NOT authorised to provide guidance [as explained in (iii) below].

I would surmise that the restoration costs would be around half the £2,500 recoverable, and hence it is a judgment call for the former client company to make, as to whether it is viable - prima facie it is viable, of course.

I would respectfully suggest that it would be inappropriate for you to offer to carry out the work yourself, engaging the specialists yourself, since:-

(i) This would add an unnecessary further layer to the overall costs,
(ii) This would leave you exposed to claims (by the company and/or its former directors , your governing body etc.) that you have engaged inappropriately in work which was outwith your field of experience,
(iii) The former client company no longer being in existence, you hold no authority to carry out any work or provide any advice.

Basil.

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Replying to fawltybasil2575:
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By Gasref95
24th Dec 2019 14:12

I appreciate your time in this response.
Thank You

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By carnmores
25th Dec 2019 21:16

Ive just done one piece of cake cost about £400.

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Replying to carnmores:
RLI
By lionofludesch
25th Dec 2019 22:34

carnmores wrote:

Ive just done one piece of cake cost about £400.

Dedication to duty there, working on Christmas Day.

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Replying to lionofludesch:
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By carnmores
26th Dec 2019 07:55

Just meant 22nd! Its really quite simple and its certainly worth it for £2.5k thats a lot of lolly to most people

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By JDBENJAMIN
26th Dec 2019 10:12

How can one piece of cake cost £400?

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Replying to JDBENJAMIN:
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By carnmores
26th Dec 2019 10:30

Its christmas silly

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By montgoke2
15th Jan 2020 17:53

I'm just doing one of these - do you have to actually attend court at any point? I've just had the court order back which I need to send on to the treasury solicitor / Companies House, but it has a date for the hearing on it. I had read that it is all done without need for attendance at court but not sure if this is correct now?

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By denish
30th Dec 2019 17:45

Apply for a discretionary grant.
- a company can restore max. of £3,000.
But before you proceed, please check the cost associated with this application.

link
https://www.gov.uk/guidance/apply-for-a-discretionary-grant-where-the-di...

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By carnmores
30th Dec 2019 18:55

Thanks for this didnt know about it, what would be the grounds for qualification do you think? Nick

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