Does a stuck off company need to appoint a liquidator

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contemporary

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I was asked if a company was stuck off because the returns were not filed does it need to appoint a liquidator to tidy up its affairs, bank account, creditors etc. I know about the ODCE things but if someone who owes me money gets stuck off and shuts up shop what recourse do I have if there is no liquidator?
 
I think that a struck off company simply looses its limited liability status, which then reverts to a personal liability on the directors. You can still persue your debt.Im not an accountant!
 
they company loses its limited liability status but the directors become personally liable after the strike off date, they stopped trading and then got stuck off about a week later so they aren't personally liable at least according to the cro site
 
the assets of a struck off company revert to the state. The liabilites becomes the perosnal responsibility of the directors.

Therefore if you company holds land or otehr assets they beocme the property of the minister of finance.
 
One should be very careful in this area. If you have applied for strike off through the proper channels fine.

However, if you have been struck-off by the CRO for non-filing the CRO are now taking action by bringing the directors of those struck off companies to court in order make the directors re-instate the companies. This can work out very very expensive.

Legal Costs
Fines
Audit Fees
Late Filing Fees

and then the directors are leaving themselves open to ODCE action on top of all that.

We were referred a client from a bookkeeper, who set up a company but never actually traded. They were ordered by the courts to re-instate the company and costs on the day amounted to over €10K. they then had 3 years late filing to file at a cost of €1,240 each. And then they had to pay our fees.

Aidan Clifford of the ACCA recently wrote an article on this very subject as a warning to all Practitioners that this is going to become more commonplace.
 
Based on the above, you should try to commence an involutary liquidation of the company. This may force the above and then the liquidation can happen.

Chances are though you will get nothing anyway. But maybe if you had a nice word to your debtor about this he might pay you a few quid so you wont???
 
As promised.....

PRACTICE IN IRELAND
A Magazine for Member of the ACCA Ireland Practitioners' Network
AUGUST 2007

Struck off Companies:

It has been reported that CRO are taking a few high court actions against companies that fail to file AR's and subsequently get struck off. The idea is that they will get a high court judge to make an order compelling a director to get their filing up to date. The order is against the director not the company, so there is no way from walking away from your obligations. An expensive day out in the high court, a couple of expensive audits and late filing fees, potentially a report on not keeping proper books of account or any of the other 300 or so indictable offences and then potentially a second day in court courtesy of the ODCE and then a creditors voluntary liquidation. There is not going to be much change from €40,000

Aidan Clifford - Advisory Services
Manager, ACCA Ireland
 
Thanks for that, although i looked at the involuntary strikeoff's in the CRO gazzette and see they can do 50-100 strike offs a week every week, cant see them going after every one of them somehow
 
contemporary said:
Thanks for that, although i looked at the involuntary strikeoff's in the CRO gazzette and see they can do 50-100 strike offs a week every week, cant see them going after every one of them somehow
Click to expand...

I agree, but i wouldn't like to be dealing with a client where they are the one chosen for this treatment, especially if i hadn't warned them that this could happen.
 
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