involuntary Strike offs

capefear

Mods delete if not allowed to post this here.

As of last week, the CRO started striking off companies that haven't filed annual returns in the last couple of years and it resulted in just under 900 companies being struck off the register, this is going to be an ongoing occurrence with the CRO as there are a lot of companies with outstanding annual returns.

Now we are trying to help companies get their affairs in order so they won't be struck off and the thing we are seeing is a lot of companies don't know their returns are late, as they aren't receiving the involuntary strike-off letters.

So if anyone here is a limited company reach out to an accountant or send me a DM and we can check to make sure your company is ok and not late and won't be struck off, it will only take 5 minutes to check and we can tell you what your options are if you are late.

Act now as once the company is struck off the register it will cost you thousands to get it back on the register and if you don't get the company restored the office of the https://cea.gov.ie/en-ie/ can prosecute you.

Mick Tator

That’s a good call. There are millions of euro out there waiting to be collected and it's about time the CRO started doing its job.

In my experience the CoSec gets several CRO reminders that the co is listed for strike off so frankly, being struck off invariably is due to ignoring the many warnings and zero corporate governance. Many operators of such companies are unaware that the individuals running the business  become personally liable for trade debt after a company is struck off.

capefear

https://www.boards.ie/discussion/comment/121661585#Comment_121661585

Hi Mick

During covid the CRO put a hold on involuntary strike offs so werent really sending out that many reminders. In July they started sending out email reminders to the last email address they have for the companies on their system. But what we are seeing is alot of the email address they are sending reminders to are cosec companies so the client probably isnt getting them as they no longer use or deal with the cosec company. When the CRO send out the involuntary strike off letter, we are seeing that companies no longer are at the address the cro have on the system or the directors are no longer at the address they have on the system and now the CRO have started the involuntary strike off process and alot of companies arent even aware they are behind on their annual return submissions.

And because the CRO put a hold on involuntary strikes since march 2020, the late fees are thousands just as an example if the last return a company submitted was 2019 ( covid was in 2020) so companies could have returns outstanding from 2020, 21, 22 and 23 which is incurring late fees of €1200 per annual retun so €4800 in total and thats just cro late fees, doesnt include auditors fees etc. So its going to get very messy and expensive for company's that dont sort their affairs out now.

We had one client reach out to us when his dormant company was strike off listed but he didnt come to us in time so his company was dissolved last week. His options are now to restore the company which will cost him, cro fees of €300 to restore the company, then cro late fees of €4800 for the due annual return that needs to be file and auditor fees for each dormant accounts that need to be produced as the company lost the audit exemption so thats quite alot of money for a dormant company. He isnt going to have much change back from €10000

Now his second option is to do nothing and hope the CEA dont pursue him, but after talking to a barrister last week, the barrister is advising him to restore the company and close it the right way as the CEA will start with the prosecution’s in the not to distance future and he reckons they will make companies go back and get their companies affairs in order as well as fine them and maybe even disqualify them if they have 3 or more company’s involuntary struck off.

Mick Tator

Hang on a minute, Cape.

I’ve mentioned ‘fiduciary duty’ in this forum  countless times in the past. I’m no apologist for the CRO, a body I have little time for due to past business experience. It largely went to sleep during Covid, as did most of the Civil Service, but it did function, slowly.

However, neither do I have sympathy for the whiners who are now facing bills of a few €K because they ignored their fiduciary duties. Limited liability brings responsibilities. It should be obvious to anyone of ordinary intelligence that directors are obliged to keep proper books and records, which includes filing returns, changes of all institutional details, addresses, etc. Also, the majority of companies & directors remain at the same addresses. Blaming Covid or an out-sourced CoSec role is a “The dog ate my homework” excuse.

I thought (rusty on that part of Company Law) it took a trip to the High Court to restore a company to the list? Did that change in the 2014 Act?  Anyone who allows three companies to be struck-off deserves disqualification on the basis of ineptitude. From memory of the CLRG back in the day, disqualification as a result of strike-off was aimed at penalizing directors that simply abandoned insolvent companies as an alternative to liquidation.

My take - if someone is a company director they are a grownup and should know the rules. Pay up.

Mick Tator

@Gloomtastic! Hey Gloomster, remember this? https://www.boards.ie/discussion/comment/92908462/#Comment_92908462 😂 Since then the ODCE has gone down the toilet in shame.😊

lucyhere

Found a very helpful thread thanks, everyone!

bucketybuck

https://www.boards.ie/discussion/comment/121661721#Comment_121661721

So they just forgot to do returns for 4 years?

I thought reminders were for people who forget that a deadline is approaching, not for those who will go for years not bothering to do returns at all.