Payments to former shareholders/liquidators of dissolved companies
How the Crown Solicitor makes discretionary payments to former shareholders/liquidators of a dissolved company.
The applicable procedure depends upon whether a dissolved company can or cannot be restored to the Register at Companies House. If a dissolved company can be restored to the Register, the Crown Solicitor as nominee and with the approval of the Treasury Solicitor may make a discretionary payment from its assets to the former shareholders, liquidators, administrators or company voluntary arrangement (CVA) supervisors.
Discretionary payments
Discretionary payments are paid from cash balances received from banks and other financial institutions and other assets. Discretionary payments are not normally made where administrative restoration is possible under the Companies Act 2006. If you want to administratively restore a dissolved company that owned any assets or rights at the time of its dissolution, you will need a waiver letter from the Crown Solicitor's Office.
If former shareholders, liquidators, administrators or CVA supervisors wish to apply for a discretionary payment, they will have to meet the Crown Solicitor's requirements.
The maximum amount for a discretionary payment for a company that can be restored to the register is limited to 拢3,000. However, this limit does not apply to companies which cannot legally be restored. If a dissolved company cannot be restored to the Register a discretionary payment may be made, but normally only to relieve hardship or if it would be unreasonable for the Crown to keep the asset, or where there is a compelling public interest in making any payment.
Debts and liabilities
The Crown Solicitor is unable to make discretionary payments to creditors. The Crown Solicitor does not take responsibility for managing a dissolved company and so is not responsible for the company's debts or any other liabilities the company may have had.
If you are a creditor of a dissolved company of which the Crown Solicitor's Office holds the assets, you can only pursue your claim by having the company restored (provided this is within six years from the date of dissolution).