Monday, August 12, 2019

Reasons For Reinstating A Company

By Carl Kelly


There are a number of reasons for which a company could be struck off the companies register. In the first place, it can be on a voluntary basis, which happens when the firm is no longer needed by its directors. They could then need to file the necessary documents. It could also be because some statutory documents like annual accounts are not correctly filed within the required time. Companies will also be struck off when they go into liquidation. When it comes to reinstating a company there are a number of things that you need to know.

After a firm gets stuck off, any of the assets which it owns are passed to the crown. The only way that one can retrieve such assets is when they make an application to the courts to have the business restored. Such companies will also cease to exist as legal entities. That will mean it cannot trade, sue or be sued, enter into contracts or own assets.

There are a number of reasons that would require one to have a company restored. As an example, there are instances when a business has a title to a certain asset, which could be money or some physical property. If that is the case, if you need to have that property recovered, you will have no other option but to have that business restored. The other instance could be when you are a third party and there are claims which remain unresolved. That would then mean that you have to get the company restored in order to get compensation.

Depending on the way that business was de-registered, there are several ways of having it restored. The two main methods are through administrative restoration and through court processes. The methods are very varied as regards the complexity, costs and time. You also need to note that some situations will require specific methods. If for instance the business was voluntarily struck off, you will only get to restore it via a court process.

You will need to hire an attorney to oversee the entire procedure. That is more so for court proceedings which are sensitive and complex. It is a procedure that will require that you coordinate with the government legal department and the registrar of companies. In certain instances, creditors, accountants and tax advisers will also have to be hired.

The process will also involves drafting different legal documents like claim forms or witness statements. Owing to the strict nature of the process of having a company reinstated, you will need to engage an attorney for preparation of all the required documents. The legal documents are supposed to be issued to the relevant parties. They are also supposed to be issued within the right time.

The fees that is charged will depend on the procedure that is used. Most attorneys charged a flat fee, but you can also find other structures. When looking for a suitable attorney, you need to know what the charges will be.

It will be important to understand what disbursements are. They are the fees which are charged by third parties. They include government legal department fees and court fees. The fees are collected from all relevant third parties and then paid off on behalf of the client.




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