Striking off a company is a legal process that allows businesses to voluntarily close down their operations. This procedure is applicable when a company is no longer active or viable, and its directors wish to dissolve it formally. In this blog, we will provide a comprehensive step-by-step guide to help you understand the procedure to get a company struck off.
Step 1: Board Resolution :
The first step in the striking off process is to hold a board meeting and pass a resolution proposing the closure of the company. The resolution should be approved by a majority of the directors, and it must outline the reasons for the decision to strike off the company. Ensure that the decision complies with the regulations of the country in which the company is registered.
Step 2: Shareholder Approval :
After passing the board resolution, convene an extraordinary general meeting (EGM) to seek approval from the shareholders for the company’s striking off. Provide proper notice of the EGM to all shareholders, along with the agenda and supporting documents. A special resolution, typically requiring a three-fourths majority vote, is necessary for the approval of the striking off proposal.
Step 3: Clearance of Liabilities :
Before proceeding with the striking off process, ensure that the company has cleared all its outstanding liabilities, including debts, taxes, and other financial obligations. Obtain clearance certificates from relevant authorities to confirm that all dues are settled. Additionally, close all bank accounts and settle outstanding payments with suppliers and creditors.
Step 4: Application for Strike Off :
Prepare the necessary documentation to apply for the company’s striking off. The application typically includes the board resolution, shareholder approval, clearance certificates, and other relevant financial documents. File the application with the appropriate government authority responsible for company registrations in your country.
Step 5: Publication of Strike Off Notice :
After submitting the application, wait for the government authority to process it. If approved, they will publish a notice of the company’s striking off in a designated government gazette or official website. This notice allows creditors and other interested parties to raise objections if they have any concerns regarding the company’s dissolution.
Step 6: Objections and Striking Off :
Following the publication of the notice, there is a specified waiting period, during which interested parties can raise objections to the company’s striking off. If there are no valid objections or issues, the government authority will officially strike off the company from the register, effectively dissolving it.
Step 7: Informing Relevant Authorities :
After the striking off process is complete, inform all relevant authorities, including tax authorities, business partners, and regulatory bodies, about the company’s dissolution. Ensure that all legal requirements are fulfilled, and any remaining assets or liabilities are properly dealt with.
The procedure to get a company struck off involves a series of steps that require careful planning, compliance with legal regulations, and documentation. By following this step-by-step guide, you can effectively navigate the striking off process and formally dissolve a company that is no longer active or viable.