Companies House may now use electronic means to strike off defunct companies and LLPs

August 15, 2015

The power of the Registrar of Companies to strike off a company or LLP not carrying on business or in operation has been amended so that the Registrar’s attempts to communicate with the company or LLP prior to it being struck off may be made by electronic communication, rather than by posting a letter.

The Companies (Striking Off) (Electronic Communications) Order 2014 (the “Order”) came into force on 11 July 2014. It amends the Companies Act 2006 and Limited Liability Partnerships =(Application of Companies Act 2006) Regulations 2009 to enable the registrar to send letters and notices of strike off to defunct companies and LLPs by electronic means, including email and text messages.

If the registrar has reasonable cause to believe that a company or LLP is not carrying on business or in operation, it has the power to strike off that company or LLP. To do so, it must follow a procedure which involves two attempts at communication. If there is no response in the specified time limits, this is followed by a notice in the Gazette and, if there is still no response, the company or LLP can be struck off three months from the date of the Gazette notice. With regard to a liquidator, the changes permit communications to be sent to any address the liquidator provides the registrar, or (as at present) the liquidator’s last known place of business. The definition of address in the Order is wide enough to cover e-mail, fax and other electronic methods of communication.

The Order also amends the Limited Liability Partnerships (Application of Companies Act 2006) Regulations 2009, applying similar changes to limited liability partnerships. Companies and LLPs will have to stipulate to the registrar that electronic communication is their preferred way of receiving information, for the registrar to communicate with them electronically. The duty will be upon the company or LLP to ensure that their electronic details are up to date if they opt in and choose to receive communications electronically.

If you are concerned about the impact of Companies (Striking Off) (Electronic Communications) Order 2014 on your business or if you require advice please do not hesitate to contact CFR on 02890243141

Please note; the content of this article is for information purposes only and further advice should be sought from a professional legal advisor before any action is taken.