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CRO lists over 10,000 companies for strike-off

Since October 2023, over 10,000 Irish companies have been strike-off listed and hundreds have been involuntarily struck off the register, Eversheds Sutherland has noted in a briefing.

Others have been dissolved for failing to adhere to their statutory obligation to file annual returns and financial statements with the Companies Registration Office.

Enforcement

Last year, the CRO resumed its programme of enforcement action against non-compliant companies, the lawyers point out.

This followed a temporary hiatus for difficulties that arose for companies during the pandemic.

Filing annual return and financial statements is a primary responsibility for officers of a company that arises every year.

A company’s failure to attend to these filings for one or more years empowers the CRO to commence strike-off proceedings.

The CRO will issue reminder letters to non-compliant companies. If, within 28 days of the notice being issued, the company does not bring its filings up to date, a notice of impending strike off will be published in the CRO Gazette.

If the company does not comply within 28 days of this notice, the company may be struck off the register and dissolved.

Consequences

If a company has been involuntarily struck off, significant implications for the company and its directors can follow. The company will cease to exist as a legal entity and its assets will become vested in the State, while the company’s bank will be required to freeze any accounts the company holds.

Potential liability for the officers and members of the company will remain, and enforcement may be taken against the company as if it had not been dissolved. Officers can be subjected to fines and could be held liable without limitation for the debts of the company, the lawyers point out.