Non-trading company

hinault

This is a bit of an odd one.

I've a company which has traded for the last few years.
In the last financial year the company did not trade.
It had no turnover, no expenses.
All assets have been realised and all liabilities have been settled/discharged.
The balance sheet currently has zero assets and zero liabilities.

Obviously the directors of this company have to make a return to the CRO and the directors do not wish to windup the company
in the hope that the company will trade in the near future.

Can any of you advise of a suitable wording for CRO Directors report to reflect the fact that the company hasn't traded in the last financial year?
Is there a standard template to word this?

Any help would be appreciated.

dbran

Hi

I would say "On xx/xx/xx the company ceased to trade. The directors are currently reviewing the company's options."

Hope this helps

dbran

hinault

dbran wrote: »

Hi

I would say "On xx/xx/xx the company ceased to trade. The directors are currently reviewing the company's options."

Hope this helps

dbran

Thanks

Can the directors report be that brief?

I know that the directors hope that the company will trade in the near future and therefore do not wish to wind down the company.
But I've seen a director report wording for a company in this situation!

dbran

Hi

Sorry. This would just be an additional sentence in the review of business section.

But why bother?

If it is a dormant company then the abridged accounts don't need a directors report anyway!!

Kind Regards


Dbran

hinault

dbran wrote: »

Hi

Sorry. This would just be an additional sentence in the review of business section.

But why bother?

If it is a dormant company then the abridged accounts don't need a directors report anyway!!

Kind Regards


Dbran

Thanks.

Of course a dormant company has no activity, hence no requirement to file a directors report.
Stupid me!

I had considered including a one line report like the one attached here filed in the UK.
http://www.vtsoftware.co.uk/final_accounts/dormant.pdf

But it's academic now.
Thanks again for the help!

thecleverone

As mentioned, you don't need a directors report but for anyone else trying to file their own set of accounts, a sample starts on page 13 of the CRO's audit exemption leaflet here