No active directors

Khaderbhai

What happens when a company has no active directors? They are in breach I believe, so are they struck off? How does it get to this point? Thanks

Penguin_

Companies House will give them a deadline to appoint a new director, or directors, & if they don't adhere to the deadline the company will be struck off.

Khaderbhai

Ok thanks. Is that a ploy by a company to get struck off without having to pay IP to liquidate? 

tightauldgit

Khaderbhai said:

What happens when a company has no active directors? They are in breach I believe, so are they struck off? How does it get to this point? Thanks

What happened to the former director? I don't think you can just resign if you are the sole director of a company. 

Who are the shareholders? 

If a director isn't appointed then I think they could potentially have some serious consequences. Especially if they were trying to get around liquidation I would imagine.

DullGreyGuy

Khaderbhai said:

Ok thanks. Is that a ploy by a company to get struck off without having to pay IP to liquidate? 

The winding up notice would be published in the Gazette and certainly any corporate creditors would object to the winding up due to outstanding monies owed 

Not an expert on the inner workings of companies house but would be surprised if they'd simply allow the last director to resign though obviously there can be other route out like if they have died

Khaderbhai

tightauldgit said:

Khaderbhai said:

What happens when a company has no active directors? They are in breach I believe, so are they struck off? How does it get to this point? Thanks

What happened to the former director? I don't think you can just resign if you are the sole director of a company. 

Who are the shareholders? 

If a director isn't appointed then I think they could potentially have some serious consequences. Especially if they were trying to get around liquidation I would imagine.

I didn’t think you could either but I occasionally come across it on CH and wonder how its happened. 

tightauldgit

Apparently yes you can resign according to a quick Google but then the shareholders have to appoint someone else (given that in most small companies the directors are the shareholders I don't think this really would get you out of anything legally). So it then comes back to who are the shareholders of the company I guess.