How To Dissolve A Ltd Company Which Has No Assets

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eirman

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How does one dissolve/windup an insolvent Limited Liability Company that has virtually no assets?

There is 5k owing to Revenue (PRSI & Employee tax).
And possibly 20k plus in legal fees (owed to a Government Department).
And possibly another 1k elsewhere.

There are no personal guarantees.

Most equipment was leased and is being returned to the owners.

There are virtually no assets (less than €500 in office furniture) so there is absolutely no money to pay a liquidator.

I heard that simply not submitting audited accounts and letting the automatic strike-off process proceed was not sufficient because money is owing.

What can be done? The company accountant hasn't got a clue.
 
Thanks Brendan .... useful key post.

I spoke to http://www.closedforbusiness.ie/ and it would appear that one can do nothing .... i.e. don't submit returns for two consecutive years,
and then be automatically struck off.
This runs the risk of some type of prosecution by the ODCE.

So if you want to sleep soundly, the safer (and legally correct) course of action, is for the directors to fork out and pay for a liquidator.
 
Under current rules you can't apply to have the company struck off while it has creditors I guess it makes sense. Can you reach any agreement with the creditors to get the liabilities dealt with?

But you are right if you don't file the annual return for a couple of years the CRO will strike off the company.

Seems strange that by breaking the law you can achieve your goal.

There will be a day when Shane Ross et al are jumping up and down in the PAC about the CRO striking off these companies and the ODCE standing by. It does not say much for corporate governance culture.

The ODCE don't have the capacity as I understand it to prosecute all directors for failing to file but perhaps he does not wake up one morning and say lets write to 100 directors at random and instigate proceedings.
 
Joe_90 said:
Under current rules you can't apply to have the company struck off while it has creditors I guess it makes sense. Can you reach any agreement with the creditors to get the liabilities dealt with?

But you are right if you don't file the annual return for a couple of years the CRO will strike off the company.

Seems strange that by breaking the law you can achieve your goal.

There will be a day when Shane Ross et al are jumping up and down in the PAC about the CRO striking off these companies and the ODCE standing by. It does not say much for corporate governance culture.

The ODCE don't have the capacity as I understand it to prosecute all directors for failing to file but perhaps he does not wake up one morning and say lets write to 100 directors at random and instigate proceedings.
Click to expand...

ODCE is in no hurry to prosecute directors. Many serial directors of struck off companies keep opening up new companies, have them struck off and repeat the cycle. CRO or ODCE do absolutely nothing.
 
Not sure a liquidator would even take this on. If there's no assets for them to take their fees from they would probably pass on it.
 
Unless you are handing him cold hard cash at the start of the process he will indeed pass.
 
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