13,000 Companies to be Struck Off

Our man in Havana

Got this today by email:

13,000+ Irish companies have just been tagged for ‘STRIKE OFF’, by the CRO.


This is one of the largest batches ever! Just under 10% of all normal companies have had their Company Status changed to 'Strike Off Listed'.

Many of which could be your clients or competitors.

To check if any of the companies you deal with, or represent, have been ‘Strike Off Listed’ Absolutely Free of Charge, simply log on to Vision-NET.ie - if you have a Vision-NET account.

The consequences of ‘Strike Off’ are very serious for a company that is still trading.

The assets of the company become the property of the State on dissolution of the company;
The company ceases to exist as a legal entity with effect from the date of strike off and dissolution;
The protection of limited liability is lost with effect from that date, and if the business formerly carried on through the company is continued, the owners are trading in their personal capacity;
Banks should be unwilling to lend money to an entity which has, effectively, ceased to exist;
There can also be unpleasant consequences for directors of such companies in that a disqualification order may be made against them by the High Court on the application of the Director of Corporate Enforcement.

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10% of companies are going to be struck off. That is alarming. What would happen if a company who is being struck off owes money to private persons, do they have any recourse?

Are most of the 13,000 dormant companies?

Any observations would be appreciated.

James

dahamsta

The Phoenix has been chattering about this in recent months, apparently the CRO is going zero tolerance. I'd imagine this is the first big clearout, so I'd guess that most of them are well dormant.

adam

Our man in Havana

There can also be unpleasant consequences for directors of such companies in that a disqualification order may be made against them by the High Court on the application of the Director of Corporate Enforcement.

I bet it would take a long time for the 26,000 directors to be brought to the High Court. Does anyone think that they would even bother?

James

Is1ldur

I am surprised they have gone ahead and done this, particularly when so many companies still have not figured out the whole Next Annual Return Date rule which was introduced not too long ago. I actually came across a company today which is still trading, but is now Strike-Off listed.
The company will get a letter from the CRO stating this and will have time to get their affairs in order. In the mean-time, however, I would suggest not giving these companies any credit.

Our man in Havana

From what I can gather, These companies have already had a registered letter from CRO advising of strike off. This happened on October 3rd.

The letter gives them a final month to put their house in order or a notice will be placed in Iris Oifigiuil and a month after that the company will be disolved and all assets will be vested in the state.

I guess in a few months there will be a huge government auction of seized goods from struck off companies.

James

Victor

Originally posted by Bond-James Bond
I guess in a few months there will be a huge government auction of seized goods from struck off companies.

Unlikely, most will be either non-trading / assetless companies, Irish registered, non resident companies or people who will simply apply to the High Court to be reregistered.

befuddle

Hi there. What does it mean when the company status changes from "Strike Off Listed" to "Normal"

There is a particular developer :mad: we have a high court order against that has recently changed its company status to Normal so just wondering what that could possibly mean for us.

aidan.connolly

Hi,

As far as I know, this status usually means that all returns etc in the CRO office are now up to date. I am open to correction on this

Aidan

capefear

Yep Aidan, you are correct. The company has submitted its late returns and as far as the Cro all this companys returns have been filed upto date.

dbran

Hi

This thread is 9 years old.

dbran