Under the Corporations Act 2001, ASIC has the power to “strike off” a company. ASIC is quite active in initiating the deregistration of companies. “Strike off” refers to the removal of the company name from the company register, resulting in its dissolution.
This method is used by ASIC when it believes that a company is not in operation, is not carrying on a business or has ceased to carry on a business.
To strike off a company, ASIC sends a letter to the registered office of the company stating that if no reply is received within one month, then a notice will be published in the Commonwealth Government Gazette, with a view to striking the company off the company register. If ASIC doesn’t receive a reply then the notice is published in the Gazette, another letter is sent to the company, and then unless it is shown within three months that the company is still in business, ASIC strikes the company off the register.
Commonly, a company misses the notices from ASIC and is inadvertently struck off the register.
This can be a problem if a creditor of the company wants to pursue it, because a deregistered company cannot be put into voluntary liquidation. Usually a director of the company will have to use a lawyer to apply to court to have the company reactivated, this can be a lengthy and expensive process
At Dissolve we are experienced in applications for reinstatement and we would be happy to lead you through the process.
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