What Happens To The Assets Of A Struck-off

1. What Happens to the Assets of a Struck-Off Limited Company?

2. Agenda What is a company strike-off? What happens to the assets? What happens to company-owned land? ConTeTra can help Presentation Title

3. Introduction A common fate for many limited companies is to close. Contrary to popular belief, this isn’t always down to financial hardship. While that certainly is one reason for a limited company to close, there are many others. Retirement and transition to different roles being noteworthy examples. Though this is a common occurrence, one largely understood by most people at a glance. One aspect is left unclear – what happens to the assets of a struck-off company? Presentation Title

4. What is a Company Strike-off?

5. What is a Company Strike-Off? • A company strike-off, often referred to as a dissolution, is the process of removing a company from the Companies House register. At the end of the process, a struck-off company will be closed and no longer exist. • There are two types of company strike-offs – voluntary and compulsory. • A voluntary strike-off is initiated by a company’s directors, and for a whole host of reasons. While retirement and a role change are two aforementioned reasons, countless others could inspire directors to wind down operations. • Directors will file a DS01 form, applying for the strike-off. A notice will be published in the Gazette. This allows for a two-month window in which to object to the strike-off. • If none are made, the company will close, and the process will end. However, for companies experiencing financial hardship, a voluntary strike-off is not the way forward. • In fact, if the problem is allowed to get out of control, the company may be forced into a compulsory strike-off. Which can be disastrous for an insolvent company and its directors. Presentation Title

6. What Happens to the Assets?

7. What Happens to the Assets? • When a company is being struck off, the directors are responsible for disposing of the assets before the process ends. • During a voluntary strike-off, this means that directors must either liquidate any assets and keep the money, or transfer them elsewhere. • If neither of these options is taken, then the assets, including company accounts, will be transferred to the Crown upon the company’s closing. Presentation Title

8. What Happens to Company-Owned Land?

9. What happens to company-owned land? • For some companies, land will be a part of their list of assets. Given that land is quite different to most other company assets, it is often treated differently. • Unlike other assets, the Crown may well leave company land alone. The Crown wants to make as much money as possible in the shortest space of time. As land often comes with maintenance costs, it doesn’t always make sense to hold. • A prime example of such an occurrence is leasehold land. Leasehold land comes with a recurring cost. If there is a lot of time left on the contract, the Crown will end up paying a hefty fee in order to keep it. • Conversely, if the land is a freehold and lacks any notable maintenance costs, the Crown will likely press its right to take ownership of the land. Selling it on if it finds a buyer. Presentation Title

10. Contetra Can Help

11. ConTeTra Can Help • If your company is facing financial hardship, then it might be best to explore your options for winding down operations. Strike That is A Service That Helps You Get The Details Of “STRUCK OFF” Companies, for Hassle-free Compliance With The New MandatoryDisclosure Requirement Of Schedule III. • ConTeTra provides solution for below Two Steps only- Receive the output in recordtime (powered by our AI-enabled tool that scrapes throughMCA website for you – leaving noroom for manual errors) Upload your list of vendors/supplierswith their GST numbers (whichis easily available with everyfinance team). For those vendorswhere GST number is not available,our tool can also do a PAN or CINbased search. Presentation Title

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