Meaning
Judicial directive issued to the registrar of companies to return a dissolved entity to the active corporate register. Restoration order applications are typically made by former directors or creditors who need the company to exist again to pursue a legal claim or handle property. Once granted, the company is deemed to have continued in existence as if it had never been dissolved.
This process is limited by statutory timeframes, usually six years from the date of dissolution for most applications.
Asset Recovery
Property retrieval allows for the return of assets that were transferred to the state as bona vacantia upon the original dissolution. When a restoration order is made, the legal title to these assets automatically revests in the company. This is particularly useful when a bank account or a piece of real estate was forgotten during the winding-up process.
The order provides a clear legal path to reclaiming value that would otherwise be lost to the state forever.
Litigation Commencement
Creditors gain a window to bring actions against a company that was struck off before their debts were satisfied. Without a restoration order, a claimant cannot serve legal papers on a non-existent entity. The court will consider whether the revival of the company is just and equitable in the circumstances.
Administrative Requirement
Compliance demands involve the filing of all overdue accounts and annual returns as a condition of the company being reinstated. A petitioner for a restoration order must often pay the backdated filing fees and any penalties incurred prior to the dissolution. The registrar will not update the status until the corporate record is brought fully up to date.
This ensures that the restored entity complies with the same transparency standards as any other active business.
