Striking off a company is a process that is carried out by the Registrar of Companies (RoC) when it is found that the company has not been carrying out its business activities for the past two years or more. Striking off a company has serious implications for the directors of the company, and it is important to understand what happens to them when a company is struck off.
What Is Striking Off?
Striking off a company is a process that is carried out by the Registrar of Companies (RoC). This is done when it is found that the company has not been carrying out its business activities for the past two years or more. In such cases, the RoC can initiate a procedure wherein the company is removed from the register of companies and is no longer legally recognised.
What Happens to Directors?
When a company is struck off, the directors of the company are legally liable for any debts or liabilities that the company may have incurred. The directors are also held responsible for ensuring that all statutory filings are completed before the company is struck off. Furthermore, if the company is struck off due to any fraudulent activity, the directors may be held liable for criminal charges. The directors may also face disqualification from holding any directorships in the future.
In conclusion, striking off a company has serious implications for the directors of the company. It is important for the directors to be aware of the legal and financial implications of striking off a company before taking any action. It is also important to ensure that all statutory filings are completed before the company is struck off.
