Sometimes we are called in by a client to sort out a difficult situation – in this case the Company was meant to go into a Members’ Voluntary Liquidation but had been struck off from the register at Companies House. The process had gone wrong, for reasons the client explains below. This led to the Company – Merrileas Management Co Ltd, a company involved in the management of real estate – being struck off from the Register before the cash balance in the business bank account was cleared due to an administrative error at Companies House. Swift action was required to enable the restoration of the Limited Company and to recover the funds held by the Treasury Solicitor.
After the Company’s restoration, it transpired that the Company’s net assets (being the cash balance) were less than £25,000 so there was no need to place it into a Members’ Voluntary Liquidation, which was advised to the client by our team.
Mrs A M B from the Client takes up the story
“For tax reasons on the recommendation of our accountant, we decided to put our small, one director company into solvent liquidation using a Members Voluntary Liquidation. Unfortunately, due to a lack of procedural clarification and the director being absent abroad on the closure date, the company was dissolved before the assets in the business bank account were cleared. Unbeknown to the director, the bank account was closed and the funds transferred to the Treasury Solicitor.
Thankfully, we were referred to Hugh Jesseman of Antony Batty & Co who immediately put the wheels in motion for a Restoration of the Limited Company.
The process was explained clearly in language understandable by the uninitiated in Company matters and the likely costs were given. Despite lengthy delays due to Covid-19 restrictions, update communications remained regular and positive right up to a successful conclusion.
I can only express my personal thanks and offer the strongest recommendation as to the professionalism and understanding of the team throughout the process. They were brilliant!”
The Case was bought to a successful conclusion
In matters such as this, it is not unusual for the client to be worried and stressed about the likely outcome and how long matters will take.
In this instance, the time needed to apply for a Court Order Restoration was 9 months, which was a direct result of the effects of Covid-19, and much longer than normal. For that reason, we are always proactive and make sure we treat our clients with openness and honesty so that they know where they stand.
