What is an Objection to a Striking off Application?
Any creditor may object and request that the striking of action be suspended, withing the notice period of 2 months (and from observation about another 10 days afterwards) until any outstanding liabilities have been paid.
If this happens a notice will be visable at companies house and you will receive a letter to your registered address informing you that the Compulstory Strike off is suspended.
In our experience, you will often be unaware of the suspension, because many registered offices simply aren’t monitored, particularly after a voluntary strike-off using a DS01 form.
HMRC in the main will be the primary objector for unpaid tax – even if your last bill was up to date – as they may want further records and information to cover the final trading period.
It may be that a simple call to HMRC to explain the situation will suffice and remove their objection.
Charge holders such as banks and finance companies will also look to oppose any strike off unless you have an alternative repayment plan in place.
In particular there is a growing trend of Bounce Back Loan lenders raising objections and the dissolution action suspended.
BBLS are not actually due yet but banks are chasing for the full balances once a strike off has been started, because they have to demonstrate that they are doing everything possible to get the money back before the Government will pay out.
The rest will probably be larger creditors – although even the smallest creditor is able to stop the strike off, for example an unpaid web hosting account.
Companies House can also object if there outstanding non-filing fees.
What happens next?
Effectively this now places your limited company into limbo. At this stage its worth taking some free advice from Emerald to establish your options.
You could get lucky and the strike off will continue at a date down the line, and this may continue to effect you personally and also commercially if you decide to trade again.
We have found HMRC and charge holders will look to wind up companies that they believe owe them money.
Other creditors will likely take a view based on their recovery of the extra costs involved on top of their original debts.
Some will simply have deep enough pockets that would like to cause you mischief.
We have helped many clients who have DS01 voluntary struck off their business or used an advisor, identity the right solution to close their limited company quickly.
Indeed many directors are unaware that in liquidation they and their staff can make a significant claim for redundancy in closing their business which can help you move forward, this often in exceeds of any costs involved.
Doing nothing at this stage, however runs the risk of facing personal liability for company debts in the event of a winding up petition by the creditor.
In any case, if you would like to speak with us please call 01744 333001 or 01925 506027