Effective from 1st May 2011, companies with an issued share capital in excess of €150 are precluded from making applications for voluntary dissolution.
Companies who have never traded, or ceased to trade and have no assets or liabilities and who are up to date with both their CRO and Revenue filing requirements now face the prospect of undertaking a Members Voluntary Liquidation (MVL) if they wish to formally seek dissolution.
As an alternative to the expensive process of an Members Voluntary Liquidation there is another option by conversion to an Unlimited company prior to an application for voluntary dissolution.
Unlimited companies are permitted to reduce their share capital. The CRO have indicated that they will not apply their "3 year rule" to a reduction in share capital, which they normally impose on limited companies.
The steps are as follows:
(1) Convert to unlimited,
(2) Reduce issued share capital to €150 or less, and
(3) Make an application for voluntary strike off.
Please contact Dylan Byrne OSK the Dublin Accountants for advice and a fixed fee quotation on our comprehensive company secretarial service offering.
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