Thursday, August 22, 2019

Understanding The Process Of Reinstating A Company

By Carl Kelly


There are various reasons why companies are struck off the register of companies. To begin with, it is something that could be done on a voluntary basis, something that could be because the directors do not need the business anymore. That will require that they fill all necessary documents. The other reason could be because such statutory documents as annual accounts are not filled correctly or within the required time. You could also have a business being de-registered because it has gone into liquidation. In considering reinstating a company a number of things should be considered.

After a business gets struck off, the assets will not be available for use. Such assets can only usually be retrieved when one makes application at the courts to ask that they be restored. A business which is no longer registered will not be a legal entity anymore. That essentially means the company will not be able to do any trade, sue anyone or be sued or even get contracts, Further, they cannot own assets.

There are various other reasons why one might want to have their company restored. For instance, it could be that the business had title to some asset, for instance money in the bank or some physical property. Such property might be important and thus should be recovered, which will need the business to get restored. Reinstatement could also be required when one is a third party with unresolved claims against dissolution of the company and hence must take action in order to get compensated.

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.

There is the need to hire an attorney to oversee the proceedings. Court proceedings can especially be very complex and time consuming. The process is one that involves you having to liaise with registrar of companies and the courts. In certain instances, you would also need to involve tax advisers, accountants, liquidators and creditors.

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 fee which will be charged will depend on what method one uses. A number of attorneys charge a flat fee. Others also have other structures. When you are searching for an attorney, you should know what they will be charging.

It is also important to understand the aspect of disbursements. It is the fee that is charged by a third party. It includes government legal fees as well as court fees. These fees are collected from third parties and then paid off, on behalf of a client.




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