This Content Was Last Updated on February 9, 2017 by Jessica Garbett
A change from the Treasury Solicitor – the so called Bona Vacantia concession has been dropped.
Bona Vacantia is unowned property on death of a individual or, in this case, on a company being struck off – such property reverts to the crown.
The concession meant that on a company strike off up to £4,000 of unclaimed assets, normally share capital and undistributable reserves, would not be claimed.
Now the Treasury Solicitor will claim such amounts. For a “controlled” strike off, the solution is a capital reduction under Company Law rules, a process that is much easier than it used to be. For a “uncontrolled strike off”, eg by mistake for non compliance, the amounts will be claimed by the Treasury Solicitor – they can generally be recovered by restoring the company to the Register, but this is expensive and the Treasury Solicitor can charge 5% of the restored assets (http://www.bonavacantia.gov.uk/output/dissolved-company-guidelines.aspx).
The revised rules need to be considered for all strike offs – they don’t effect liquidations – although they are of passing interest for a typical £100 capital small company.