# Company - Missed ARD - Fine - Want to close Company



## timmy1 (27 Oct 2009)

Hi,
    I have a limited company that i've been wanting to close for years that i do not use.

I haven't filled the latest annual report and i have nothing to report, the balance sheet has about 100 euros in the bank and that's it.  No liabilities.

The CRO now state that as i have missed the ARN i've €100 fine.
Can i just ignore these letters and let the fines accumulate and eventually they will strike off the company?
What are the implications of this strategy.

It's quite involved to do a voluntary stike off, letter of no objection from revenue etc etc. 
I would be gratful for any advice you can offer.

thanks


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## DBRAN (27 Oct 2009)

Hi

If you ignore this letter the late filing fees will continue to increase at €3 per day for every day the company remains late. The company's accounts will now be required to be audited.

Eventually the CRO will put the company on a strike off list and strike the company off the register. You could then be prosecuted as a director by the ODCE or CRO for failure to file the returns of the company on time. I have never come across this yet in practice though.

The revenue will also keep sending their CT1 to the company and chase them if they are not returned whether the company is struck off or not.

One thing to consider though is it will be obvious to anyone who does a proper search on you as a director that you are a director who has left a company to be abandoned and involuntarily struck off. If I was thinking of doing business with you in the future it would definately be something I would bear in mind before i make a decision.


Kind Regards


dbran


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## bond-007 (27 Oct 2009)

In practice if a non trading company is allowed to be struck off there is no follow up action from the CRO or ODCE. I have no idea why they never chase up companies that get struck off from failing to file accounts.


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## simplyjoe (27 Oct 2009)

Slightly off the point but the system is: 
the non complier (lets the company be struck off) gets no punishment 
the complier pays all the relevant fees, penalties and professional costs 
Crazy country. Why comply? Vague threats.


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## MandaC (30 Oct 2009)

The CRO were catching up on people who abandon companies like that, but I think the move to Carlow put paid to that for a short while.

That said, I would never advise anyone to just leave the company be struck off involuntarily.  The process for voluntary strike off is not difficult at all, provided your returns are up to date.  These kind of things left hanging have a habit of creeping up and biting you in the backside when least expected.

I have also witnessed in practice what DBran said, where people are weary of dealing with people who have left companies in mid air.


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## jack2009 (9 Nov 2009)

MandaC said:


> The CRO were catching up on people who abandon companies like that, but I think the move to Carlow put paid to that for a short while.
> 
> That said, I would never advise anyone to just leave the company be struck off involuntarily. The process for voluntary strike off is not difficult at all, provided your returns are up to date. These kind of things left hanging have a habit of creeping up and biting you in the backside when least expected.
> 
> I have also witnessed in practice what DBran said, where people are weary of dealing with people who have left companies in mid air.


 
The company cannot be struck off without bringing all annual returns up to date.  Therefore you should consider having the company liquidated by way of a members voluntary liquidation.  Also it is best to "bury" the company properly just to avoid any possibilities of prosecution etc.


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## bond-007 (9 Nov 2009)

> The company cannot be struck off without bringing all annual returns up to date.


The CRO strikes off many companies each week for not filing annual returns and as said they do nothing about it.


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## DBRAN (9 Nov 2009)

bond-007 said:


> The CRO strikes off many companies each week for not filing annual returns and as said they do nothing about it.



While this may be correct at the moment it may not always be so in the future. I would hate to tell my client that he is now disqualified from being a director of all his companies due to a small company he abandoned a few years in the past.

I seem to recall a few years ago it was supposed to be a "three strikes and your out" regime. This does not seem to be the case at the moment.

In any case to advise someone to just abandon the company would be advising them to break the law, a thing which I would not do lightly.


kind Regards

dbran


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## bond-007 (9 Nov 2009)

Indeed, we cannot advise anyone to commit a criminal offence.


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## Cruiser1427 (9 Nov 2009)

Been there, done it! €2k fines and then file passed ODCE as I am director of two other companies! Spend the few quid with an accountant and get it voluntarily struck off properly... You've no idea if the 'just leave it' action will come back to haunt you in the future...


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## geeeeza007 (16 Nov 2009)

This sounds a little like my problem..to cut a long story short involving my elusive,slippery master of disappearing acts & deligating opportunities when suited, extra tricky accountant I found myself struck off ivoluntarily in the spring of this yr 09 due to not filing a return for 2008.....which according to my accountant was the way to go as I didnt take much money in two yrs.

Problem is I have a company veihcal on hp from the bank still & continuing the payments for that out of my own pocket which I mostly did any way.
I am also still getting pay slips from the revenue & just received a notice of preliminary tax for this yr from the revenue...

would appreciate any advice


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## DBRAN (17 Nov 2009)

Hi

Ring revenue, tell them the company has been struck off and if there is no o/s liabilities they may cancel the tax number.

Regarding the HP arrangement, I'm afraid you will have to keep paying or else ring them for a settlement figure and pay them off.

Regards

dbran


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## bond-007 (17 Nov 2009)

The company vehicle is now property of the Minister for Finance.


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## jack2009 (17 Nov 2009)

bond-007 said:


> The CRO strikes off many companies each week for not filing annual returns and as said they do nothing about it.


 
The CRO migh not do much about it but the ODCE and Revenue do.  I have liquidated several companies whereby the Revenue sought to restore the company and have the company liquidated in order to get money out of the company/directors.


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## bond-007 (17 Nov 2009)

That is their prerogative and they must pay any costs in doing so.


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## jack2009 (17 Nov 2009)

timmy1 said:


> Hi,
> I have a limited company that i've been wanting to close for years that i do not use.
> 
> 
> thanks


 
Then why is there a vehicle on HP?


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