Statutory Personal Liabilities of Officers in Struck off Corporate Structures
Administrative strike-off leaves statutory tax and misfeasance liabilities active, exposing officers to personal asset execution following court restoration.
Struck off Company
Meaning
Legal entities removed from the official commercial register for failure to file accounts or carry out business cease to exist as distinct legal personalities. A struck off company cannot own property, enter into contracts or bring legal proceedings against other parties. This state is often the result of administrative oversight or the abandonment of a project by its owners.
The removal from the register is a public act that serves as notice to all creditors and partners that the entity is no longer active.
Dissolution Trigger
The registrar begins the process when several notices for missing filings remain unanswered. This trigger lead to a formal notice in the official gazette stating that the company will be removed within a specific period.
Asset Forfeiture
Assets belonging to the entity at the time of the striking off become the property of the state. This forfeiture includes bank balances and intellectual property that were not transferred before the dissolution.
Restoration Barrier
Bringing the company back to life requires a court or administrative application which can be expensive and time consuming. The barrier is designed to encourage directors to maintain their filings and to provide a clear end to the life of a defunct firm. A struck off company loses all the benefits of incorporation until the register is formally corrected.