Business Insolvency
Dissolution
Under certain circumstances, it is possible to apply to Companies’ House to simply dissolve a Limited Company which has become dormant and not traded for at least three months.
Dissolution is not an appropriate tool to deal with unpaid creditors.
All creditors have to be notified of the application to dissolve the company. Any shareholder or creditor can apply for the company to be reinstated to the register at Companies’ House. The company’s trading history - and the conduct of its directors - can then be examined and, if appropriate, a recommendation made to the DBERR (formerly the DTI) for action against the directors.
Directors may remain liable for the acts of the company for up to twenty years after the dissolution of the company.