The provisions which deal with strike off and restoration of companies have, up until now, been scattered across various Companies Acts. The new Act places all of these provisions in Part 12. Practitioners should note the following:
- There are six grounds for which a company can be struck off the register and they are set out in Section 726.
- The new addition to this is that the Registrar must write to the directors of the company at their home address (as it is on the CRO record), enclosing a copy of the strike off notice which is being sent to the company at its registered address; this must be done by the Registrar at the start of the process (Section 727).
- The company in question may take what is called a “remedial step” to prevent the strike off. The remedial steps are set out in Section 729.
- If a company wants to apply to be struck off, there is now a statutory basis for doing so (new). To begin with, the company must pass a special resolution. All of the conditions are set out in Section 731 and practitioners will recognise that they follow the current non-statutory process.
- The Director of Corporate Enforcement (“DCE”) has been given a new power to obtain information from directors of a company which has been struck off. The DCE can seek a statement of affairs from the directors, and the DCE can apply to Court to have the director(s) examined under oath about its contents (Section 735).