A first Gazette notice for compulsory strike-off is a critical alert that every business owner should understand. Whether it directly affects your company, or involves a business you work with, you’ll need to be aware of the implications of a notice.
This article explains what a Gazette notice means, the reasons behind its issuance, and the steps you should take if your business, or a company you work with, receives one.
What is a first Gazette notice?
A first Gazette notice is a notice published in The Gazette in either England, Scotland or Wales, depending on which region the business operates in. It's an official warning from Companies House that a company may be closed down. This notice can be for either compulsory strike off or voluntary strike off.
What's the difference between a first Gazette notice for compulsory strike-off and a first Gazette notice for voluntary strike-off?
Both types of notice for strike-off inform the public and any interested parties that a company will soon be closed down. This allows for any objections to be raised before the company is dissolved. The difference between the two is that a Gazette notice for voluntary strike-off will occur when the business themselves intends for their company to be removed from Companies House. On the other hand, a first Gazette notice for compulsory strike-off is issued by Companies House.
When can a first Gazette notice for compulsory strike off be issued?
This can happen for a number of reasons:
- Non-compliance with filing requirements: The most common reason for issuing a Gazette notice is the failure of a business to comply with mandatory filing requirements. This includes not submitting annual company accounts on time.
- Suspected inactivity: If Companies House believes a company is no longer carrying out business or operating, it may initiate a compulsory strike-off. Signs of inactivity can include long periods of dormancy where no transactions or significant business activities are reported.
- Failure to respond to Companies House communications: Companies House periodically sends out statutory notices or requests for confirmation of company details. Failure to respond to these communications can lead to an assumption that the company is no longer active or the registered details are incorrect.
- Company request: In some cases, the directors of a company themselves may apply to be struck-off the register.
- Statutory Obligations not met: If a company fails to meet other statutory obligations, such as maintaining proper records or failing to keep up with tax filings and payments, it may also trigger a strike-off process.
What should you do if your business has a first Gazette notice registered?
If a first Gazette notice for compulsory strike off is registered against your business, the steps you’ll need to take will depend on what you wish to happen for your business.
If you intend to close your business, you might choose not to respond, though this approach risks creditors intervening if they contest the strike-off.
If you don’t wish to stop the strike-off, then you might want to consider whether there are any high value assets under your company’s name. If the business is struck off, your company's assets will revert to the Crown. To manage this, you may choose to voluntarily liquidate the company instead. This could allow for tax-efficient asset disposal through the Business Asset Disposal Relief. You will have to work with a licensed insolvency practitioner to help you.
If you want to continue operations, you’ll need to file a suspension application with Companies House to stop the strike-off process.
What happens if a customer or supplier has a registered Gazette notice?
If a customer or supplier you work with receives a Gazette notice for compulsory strike-off notice and they owe you money, it’s crucial to act quickly.
You have a limited window of three months to challenge the strike-off and recover any outstanding debts. If you don’t act within this period, it means that the company will be struck off and will cease to exist as a legal entity. Once this occurs, any remaining claims for repayment will be forfeited and will lose out on any owed.
How can you check for Gazette notices?
A Gazette notice will appear on a business’ credit profile. When you credit check a company, you’ll be able to see any legal notices registered, including any Gazette notices or County Court Judgements.
By signing up with Capitalise, you can check your own business credit score as well as the profiles of other businesses. This will ensure you are aware of any legal notices that could affect your business. Plus with the ability to manage your notifications, you can receive instant alerts when a Gazette notice for compulsory strike-off is registered, enabling you to act swiftly and protect your business effectively.
