Shareholders' Funds and volutnary strike off

Guest181

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Just looking for an extra opinion on my situation

I'm planning to put my LTD through a voluntary strike-off. While all taxes are up to date, the company developed debt to shareholders' funds, which has to be settled before the company can be closed.

I'd like to understand what options do I have. On a separate occasion I'd like to understand if I can use profit to offset shareholders funds debt.

Thanks.
 
If the company has assets then you can't use a voluntary strike off. So the first thing is realise the assets and pay off the directors loans.

If there is still assets left you need to put the company into liquidation to get the rest of the funds out.
 
would shareholders fund debt be classed as asset? say I've zero balance after paying taxes how do I pay off that shareholders funds debt and to whom should it be paid.
 
Shareholders funds have to be matched by assets so what assets does the company have.

You have to put it into liquidation to access money/assets.
 
The company has zero cash balance after paying taxes. What options does it leave me with?
 
Hi Guest

The wording you use suggests that you don't really understand the terms.

It's better that you speak to an accountant who can go through it with you.

Brendan
 
I wouldn't be here, mate, if I understand it all, thanks for a warm reception though.
 
I wouldn't be here, mate, if I understand it all, thanks for a warm reception though.

It’s sage advice; a forum such as this isn’t the place to obtain specific advice on a technical area when you don’t really understand the issues at all. That’s just the reality of it.
 
To do a voluntary strike off the company needs to have no assets and liabilities, and all tax returns submitted up to date. To have no liabilities it appears as if the company will need to write off shareholders loans. If the shareholders loans are written off you need advice as to whether the write off will generate a corporation tax liability.

Another alternative is to do a Creditors Voluntary Liquidation. Such a process would cost approx. €2,500 + VAT. However, some directors might not like the possible reputational impact of a CVL. If that is the case, the shareholders could convert their loans into share capital, and then do a Members voluntary Liquidation, which has no reputational risk.

The final alternative would be to let CRO strike off the company involuntarily. This option can be risky as CRO has now stepped up its persecution activity against directors who fail to file annual returns on time.

Jim Stafford
 
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