Moves against non-compliant firms delayed
The Companies Registration Office (CRO) has told stakeholders that it will not restart involuntary strike-off action until 2025, according to lawyers at Eversheds Sutherland.
After resuming strike-off proceedings in late 2023 after a reprieve during the COVID-19 pandemic, the CRO had to suspend all involuntary strike-offs in February 2024 due to complications with its IT system.
In a note on the firm’s website, the Eversheds Sutherland lawyers say that the CRO has told a stakeholder meeting that tests will continue on the IT systems to ensure that they are robust enough to facilitate the automated involuntary strike-off process and to avoid further errors.
‘Serious repercussions’
“The delay in recommencing involuntary strike-offs means that non-compliant companies will remain on the register for the time being, and be able to operate and trade, even if they have failed to file annual returns and financial statements for several years,” the lawyers note.
Eversheds Sutherland adds that, notwithstanding the postponement of enforcement action, companies that are non-compliant should look to bring their statutory filings up to date as soon as possible, as serious repercussions can arise for companies and their officers if they are involuntarily struck off the register.