February 2018 - Komsec Limited

We’ve put together some of the most commonly asked questions from clients in relation to Involuntary Strike Off.

What is an Involuntary Strike-off?

This means the Companies Registration Office (CRO) strike a company off the Register and technically, the Company no longer exists.

We aren’t trading, can I just let the Companies Registration Office do the strike-off and save myself money?

Don’t be tempted! You run the risk of prosecution and Director Disqualification.

Can the Company continue trading if the company has been involuntary struck-off?

No, and there can be very serious repercussions for companies that continue to trade while struck off.

How are Companies Registration Office dealing with non-compliance?

The CRO confirmed in October 2017 they are introducing a programme of prosecutions for companies who are late with filing. Frequent late filers are likely to be targeted first.

What are the fines for late filing?

CRO late filing fees, are capped at €1,200 per Annual Return.
Directors risk being disqualified for up a period of 5 years.
If convicted; the maximum fine is €5,000 and/or up to 6 months imprisonment per offence.

What do I do if I get a summons?

You will have to appear in Court, pay any outstanding penalties and bring your filings up to date.

What other Grounds are there for Strike-off besides Late Filing:

The CRO can strike off a Company because of liquidator related issues, if request by Revenue and where no company directors are on record in the CRO.

What is the process for Involuntary Strike off?

The process takes a few months, CRO first a reminder, followed by a statutory notice, and then publishes notices in the CRO Gazette. If after all these stages, relevant filings and fines are not paid – the company is dissolved.

Is it possible to have a company restored to the register after involuntary strike-off?

It is possible to have a Company restored to the Register, but this can be very costly exercise, especially if an application to the High Court is necessary. You also need to factor in the costs of paying late filing fees, filing outstanding Annual Returns and Financial Statements.

Conclusion

Ensure Annual Returns are filed on time to avoid involuntary strike-off and unnecessary fines.

If you have any questions on any aspect of striking off your Company please free to contact either Van Geraghty or Kathryn Maybury at KomSec Limited on +353 1 210 7595 or email your enquiry to info@komsec.ie.

A Board should challenge itself, and its Management Team. It should actively review, question, explore potential flaws, exploit current and future potential of the Company. The greatest threat faced by any Company is not political or economic but, complacency. Having a diverse Board should be a key tool to ensure complacency does not exist or creep into a company structure unseen or, unchallenged.

Board Diversity should embrace all diversity in order to maximise its own potential, for example:

o gender – a no brainer, society consists of different genders, why would a Board not reflect the realities of society;

o ageism – maintaining a balanced age profile on a Board provides experience and fresh thinking;

o occupation – Director occupations can bring an imbalance to a Board, e.g. the majority of individual Directors on the Board of an engineering company should not be engineers;

o length of service – staying too long on a Board can, in some cases, end up being a little like a guest who is enjoying themselves so much they do not realise they are no longer as entertaining as they once were!

Appointing an individual simply to “fit” whatever is the current hot topic for Board Diversity is insulting to the individual, and an utter waste of time for the Board, Management and the Company itself.

Boards must willingly embrace the concept of diversity in all its guises, and support the individual Directors, and the Company adapt to the change in Board dynamics.

Board diversity is for the long haul, there are no shortcuts but, like anything that is hard work the results should be worth waiting for.

Involuntary Strike Off – Some Questions Answered

Board Diversity – how diverse are you?