the revenue will accept un audited accounts. The only people that will not accepted unaudited cessation accounts is the financial regulator. Cessation accounts for a company that has ceased trading and paid off all of its liabilites leaves very little work for an experienced liquidators to look after.
Company voluntary strike-off
- Thread starter oldnick
- Start date
- i've looked at that and there still seems to be red tape and work involved.
If I could find a liquidator for under 2k I'd be delighted !
I'd be happy to get names if anybody knows one.
When I said the liquidator is effectively "auditing the auditor", I meant that if the auditor's final accounts should show the exact position, and therefore
is not the liquidator just checking what the auditor has written is correct ?
Incidentally, the govnt is holding a cash bond from the company for six months after cessation of my trading- in case some client rolls up with a demand.
Pretty good indication ,if not absolute proof, that there are no debtors.
From what i gather a liquidator is not responsible for any unknown debts due to some hidden or other naughty act of the company. His "risk" extends to something that should have been found out with reasonable diligence. Is this correct?
If I could find a liquidator for under 2k I'd be delighted !
I'd be happy to get names if anybody knows one.
When I said the liquidator is effectively "auditing the auditor", I meant that if the auditor's final accounts should show the exact position, and therefore
is not the liquidator just checking what the auditor has written is correct ?
Incidentally, the govnt is holding a cash bond from the company for six months after cessation of my trading- in case some client rolls up with a demand.
Pretty good indication ,if not absolute proof, that there are no debtors.
From what i gather a liquidator is not responsible for any unknown debts due to some hidden or other naughty act of the company. His "risk" extends to something that should have been found out with reasonable diligence. Is this correct?
Brendan Burgess
Founder
- Messages
- 52,119
Does it add anything to the existing Key Post?
How to wind up a company which no longer trades
If you feel it does, I will merge the two together.
Brendan
Many Tks for interesting and informative contributions -and for PM recommendation for a liquidator.I'll contact him.
In summary it seems from the above advice and my own research.....
1. The voluntary strike off is a great and cheap method - if one has nothing in ,owed by or to the company. One can DIY via CRO.ie or use a company like mystrikeoff.ie who for a few hundred do all the ads and paperwork.
As I have assets, (albeit just one - cash) this method seems no good.
2. could reduce share capital to zilch but the hassle and cost of going thru H.Court etc wouldn't be worth it.
3. could buy-back my shares which is permitted in various circumstances and regulations for private llc's . Still some cost, paperwork ,hassle and delay in getting approval, but worth pursuing, depending on cost of the "proper" method (4.....
4. Back to square -one which at the end of the day may be the most hassle-free:_
do the final accounts (with or without auditors ) and get a liquidator.
I gather ,and this is understandable , a liquidator would be happier ( and hopefully cheaper) if he sees accounts were done by reputable auditor.
So it's a question of providing a clean tidy set of accounts, throw in indemnification to the liquidator, who will say " you are such an honest businessman who has done everything correctly and honestly for thirty years - you must be mentally deranged, so I'll do this for nothing"
In summary it seems from the above advice and my own research.....
1. The voluntary strike off is a great and cheap method - if one has nothing in ,owed by or to the company. One can DIY via CRO.ie or use a company like mystrikeoff.ie who for a few hundred do all the ads and paperwork.
As I have assets, (albeit just one - cash) this method seems no good.
2. could reduce share capital to zilch but the hassle and cost of going thru H.Court etc wouldn't be worth it.
3. could buy-back my shares which is permitted in various circumstances and regulations for private llc's . Still some cost, paperwork ,hassle and delay in getting approval, but worth pursuing, depending on cost of the "proper" method (4.....
4. Back to square -one which at the end of the day may be the most hassle-free:_
do the final accounts (with or without auditors ) and get a liquidator.
I gather ,and this is understandable , a liquidator would be happier ( and hopefully cheaper) if he sees accounts were done by reputable auditor.
So it's a question of providing a clean tidy set of accounts, throw in indemnification to the liquidator, who will say " you are such an honest businessman who has done everything correctly and honestly for thirty years - you must be mentally deranged, so I'll do this for nothing"
oldnick,
Do me a favour and contact ICC Company formation, Company formations or Omnipro (or another company secretarial specialist) and ask can you do a share buy back under s. 208 - 210 and how much.
A client of ours did this recently and it cost €245 plus VAT to amend the M&A and €295 plus VAT for share filing incl. all filing and stamping fees.
Do a set of accounts upto cessation (not statutory accounts because your not going to file them with the CRO), then file all your tax returns, Deregister from taxes with revenue, submit your strike off documentation to CRO (prior to your ARD date) and file your own tax returns by the due date.
The strike off can only happen after you have got that bond back, bought back the shares, and closed and the bank account as you can't have any assets or liabilities.
Assuming you are indemnifying the liquidator, what is wrong with the above approach, assuming you can buyback the shares under s.208-s.210?
Regards
Do me a favour and contact ICC Company formation, Company formations or Omnipro (or another company secretarial specialist) and ask can you do a share buy back under s. 208 - 210 and how much.
A client of ours did this recently and it cost €245 plus VAT to amend the M&A and €295 plus VAT for share filing incl. all filing and stamping fees.
Do a set of accounts upto cessation (not statutory accounts because your not going to file them with the CRO), then file all your tax returns, Deregister from taxes with revenue, submit your strike off documentation to CRO (prior to your ARD date) and file your own tax returns by the due date.
The strike off can only happen after you have got that bond back, bought back the shares, and closed and the bank account as you can't have any assets or liabilities.
Assuming you are indemnifying the liquidator, what is wrong with the above approach, assuming you can buyback the shares under s.208-s.210?
Regards
Paddy -will do.
As I said in my last post it was worth pursuing ,and if it can be done as you state even more worth it.
Will get back on what they say in a couple of weeks -am off to Canaries this w.e. for a week's holiday ( oh, I should say business trip and claim a 100k travel expenses,like our TDs and ministers )
As I said in my last post it was worth pursuing ,and if it can be done as you state even more worth it.
Will get back on what they say in a couple of weeks -am off to Canaries this w.e. for a week's holiday ( oh, I should say business trip and claim a 100k travel expenses,like our TDs and ministers )
My reading of these sections does not solve the problem as the company does not qualify! However, I note that you suggested that the op go to get "proper advice" so lets wait and see what the professionals say.
The reasons I dont believe the suggest sections apply is that my reading of the sections indicates that the redemtpion and cancelling of shares only applies to shares that were redeemable.
Nevertheless if my understanding is incorrect the part goes on to say that the shares being redeemed must be redeemed from profits available for distribution and in this case there are no funds available for distribution.
Only if it's wholly and inclusively necessary for your business, the revenue rules on this don't apply to ministers.
This should make the process a whole lot cheaper
ROI -Travel Trade Industry - Removal of Audit Requirement
Further to the 2008 travel trade review legislation consultation, the Commission for Aviation Regulation ('CAR') has recently issued a notice which relates to the removal of requirement to produce an audit report. Chartered Accountants Ireland had recommended the requirement for an audit should only apply to larger companies in a representation to CAR which would reduce burden on small businesses, particularly in these difficult economic times.
ROI -Travel Trade Industry - Removal of Audit Requirement
Further to the 2008 travel trade review legislation consultation, the Commission for Aviation Regulation ('CAR') has recently issued a notice which relates to the removal of requirement to produce an audit report. Chartered Accountants Ireland had recommended the requirement for an audit should only apply to larger companies in a representation to CAR which would reduce burden on small businesses, particularly in these difficult economic times.
How long should the indemnity to the liquidator last and why is this necessary if the directors have completed a declaration of solvency and there are no creditors but cash in the account, I'm looking at this situation now and the indemnity is for 2 years after cessation of the Limited Co.
The liquidator recommended by the Accountant wants this but an enquiry made to another low cost liquidation firm told me that they do not require an indemnity. This is a members voluntary liquidation in a non trading company with a nominal amount of cash in the bank.
We would be satisfied to indemnify the liquidator up to the demise of the company but not a moment longer.
The liquidator recommended by the Accountant wants this but an enquiry made to another low cost liquidation firm told me that they do not require an indemnity. This is a members voluntary liquidation in a non trading company with a nominal amount of cash in the bank.
We would be satisfied to indemnify the liquidator up to the demise of the company but not a moment longer.