Recently the Companies Registration Office changed the rules in relation to Voluntary Strike-Off. The main changes relate to the amount of assets and liabilities and the issued share capital of the company.
The changes will restrict the option of voluntary strike off for a lot of dormant companies.
A company that ceases to trade and has no outstanding creditors can request the Registrar to strike off the company by making a formal request on a form H15, provided;
1. the amount of any assets of the company does not exceed €150
2. the amount of any liabilities of the company (including contingent and prospective liabilities) does not exceed €150 and
3. the company does not have, and did not have in the previous 3 years, an issued share capital in excess of €150.
Other information that must accompany the request for a Voluntary Strike-Off includes:
The Problem area
While relaxing the rules regarding assets and liabilities the changes have presented a problem for companies having an issued share capital in excess of €150. Where this is the case companies are faced with having to look to the alternate procedure of a members’ voluntary liquidation to have the company dissolved, a more costly procedure. An alternate route of share redemption can be a solution to reducing the issued share capital to €150, however the issue of having to wait 3 years remains. There is a possible solution in looking at the option of converting the company to unlimited status.
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