![]() ![]() To be eligible you must have been a Director, secretary, or member of the company at the time when it was deregistered. If your company has already been deregistered, you must apply to ASIC for reinstatement. You may be required to pay any outstanding fees, lodge relevant documentation, or simply write to ASIC to inform them that the company is still actively trading. For instance, if you have just received a letter advising you of a pending deregistration, it will include the relevant steps that can be taken to stop the striking off action. The necessary actions taken to stop an ASIC strike off action will depend on why the company is being deregistered and the striking off phase that it is currently in. They no longer have the right to deal with property and other assets that were registered in the company's name. In essence, the regulator will take control of, and assume any benefit of company property.ĭirectors: The rights of ‘former’ officeholders become both restricted and limited. Any legal proceedings that the company was a party to can no longer continue nor can any new proceedings against the company begin.Īssets: Property owned by the company vests in ASIC while property held on trust vests in the Commonwealth represented by ASIC. Legal Capacity: As the company ceases to exist, it is no longer recognised as a legal entity and no longer holds any legal capacity. This has an impact on a wide range of business areas as outlined below: In the process of being deregistered your company will also be dissolved. Striking off a company is significant in more ways than one. What happens if your company is struck off? The process highlights both the emphasis on clarity from the regulator, and the key responsibilities for company Directors. A failure to act within the nominated two month period will result in the company being deregistered with Directors and/or liquidators advised of such via a letter.ASIC will post a notice on the published notices website to advise the public that the company will be deregistered in two months if not action is taken.The company status is updated to display ‘SOFF’ (strike off status) on the ASIC register to reflect that it is in the process of being deregistered.A letter is sent to the company Directors and/or liquidator where applicable to advise of the pending deregistration.The actions taken by ASIC are listed below in chronological order: What is strike off action in progress ASIC?Ī strike off action in progress indicates that ASIC has begun taking the necessary steps to deregister a company. That said, Directors should have a comprehensive understanding of corporate insolvency and their fiduciary duties. There are several stages in the process of striking off a company to the extent that any Directors would be aware if this was happening. If for some reason the above applies to your company, there is no need to panic just yet. The company is being wound up and there is no liquidator.There has been a failure to respond to a compliance notice or no lodged documentation for a period of 18 months, or. ![]() The company is inactive and not carrying out any business operations.The company has failed to pay its annual review fee on time (12 months of the due date).An ASIC-initiated deregistration may be initiated if: There are numerous reasons why a company would be struck off and deregistered. ![]() Below we take an in-depth look at strike off action including why a company would be struck off, the striking off process, and how to apply for reinstatement. The impact of this should not be underestimated, in particularly if the company in question has significant assets. It is not the most conventional way to close down a business, but effectively dissolves a company and it no longer legally exists. A ‘strike off action’ is the process undertaken by the Australian Securities and Investments Commission (ASIC) to remove a company name from the company register. ![]()
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