§ Mr. BettsTo ask the President of the Board of Trade (1) how many companies registered with Companies House ceased trading in each of the last five years; what 565W reasons were recorded for this; and in how many cases the company concerned had failed to submit accounts in the previous year;
(2) how many companies failed to provide Companies house with a full set of accounts in each of the last five years; what percentage of registered companies this represents; and in how many cases directors were prosecuted for this failure.
§ Mr. Neil HamiltonResponsibility for the subject of the questions has been delegated to the chief executive of Companies House executive agency for which my Department is responsible. I have therefore asked Mr. David Durham to arrange for a reply to be given.
Letter from D. Durham to Mr. Clive Betts, dated 12 July 1993:
On 7 July you tabled the following two Parliamentary Questions:To ask the President of the Board of Trade, how many companies registered with Companies House ceased trading in each of the last five years; what reasons were recorded for this; and in how many cases the company concerned had failed to submit accounts in the previous year.To ask the President of the Board of Trade, how many companies failed to provide Companies House with a full set of accounts in each of the last five years; and
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Section A—Analysis of The Companies Register Table Al Summary of changes in the number of companies on the register, 1988–89 to 1992–93 Thousands of companies 1988–89 1989–90 1990–91 1991–92 1992–93 Great Britain On register at start of period 1,115.2 1,133.2 1,175.4 1,186.9 1,180.2 New companies incorporated 135.0 126.3 115.5 112.0 108.8 Dissolved 118.2 85.6 105.4 119.9 153.9 Restored to the register 1.2 1.5 1.4 1.2 1.4 On register at end of period 1,133.2 1,175.4 1,186.9 1,180.2 1,136.4 Of which: in liquidation 63.2 65.1 72.3 84.3 92.9 In course of removal 97.1 100.6 82.7 116.1 82.9 Effective numbers on register at end of period 972.8 1,009.7 1,031.9 979.8 960.6 England and Wales On register at start of period 1,061.3 1,075.9 1,115.0 1,125.1 1,117.9 New companies incorporated 128.1 119.3 108.7 105.4 102.7 Dissolved 114.6 81.6 99.9 113.8 147.2 Restored to the register 1.1 1.4 1.3 1.1 1.3 On register at end of period 1,075.9 1,115.0 1,125.1 1,117.9 1,074.6 Change on previous year (per cent.) 1.4 3.6 0.9 -0.6 -3.9 Of which: in liquidation 60.1 61.6 68.3 80.5 88.8 In course of removal 92.2 95.0 78.5 111.2 78.9 Effective numbers on register at end of period 923.5 958.4 978.3 926.2 906.8 Change on previous year (per cent.) 6.6 3.8 2.1 -5.3 -2.1 Scotland On register at start of period 53.9 57.3 60.4 61.8 62.3 New companies incorporated 6.9 7.0 6.8 6.5 6.1 Dissolved 3.6 4.0 5.5 6.1 6.7 Restored to the register 0.1 0.1 0.1 0.1 0.1 On register at end of period 57.3 60.4 61.8 62.3 61.8 Change on previous year (per cent.) 6.3 5.4 2.3 0.8 -0.7 Of which: in liquidation 3.1 3.5 4.0 3.8 4.1 In course of removal 4.9 5.6 4.2 4.9 4.0 Effective numbers on register at end of period 49.3 51.3 53.6 53.6 53.8 Change on previous year (per cent.) 10.1 4.1 4.4 0.0 0.4 what percentage of registered companies this represents; and in how many cases directors were prosecuted for this failure.
Following the answer given by Mr. Hamilton, I am replying as Chief Executive of Companies House.
I am unable to provide the precise figures you require but the figures contained in the attached five tables provide similar information to that requested. This and other information will be made available in the report made each year by the Secretary of State to Parliament under section 729 of the Companies Act 1985. In the meantime, last year's report "Companies in 1991–92" may be of further help.
I am sorry that I cannot provide precisely the information you require but most of the figures are not kept or aggregated in the form you request. Specifically, we do not keep aggregated information on whether a company in receivership or liquidation has filed accounts for its previous financial year. Because of the limited court time available to Companies House and the length of time it takes to get a case to court, I am also unable to provide figures that establish a direct relationship between prosecutions for non-filing and a company's financial year to which the offence relates.
As it is not a statutory requirement to inform Companies House of the reasons why a company discontinues trading and, there is no requirement for a company that ceases to trade to be removed from the register, I am unable to give the number of companies that have ceased to trade in the terms that you specify. Finally, as Section 246 Companies Act 1985 allows companies to file abbreviated accounts in certain circumstances, the "compliance table" (table F3) interprets the words "full accounts" in the widest sense to mean that accounts have been received that comply with the requirements of the Act.
I hope that this reply covers the points tabled in your questions.
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Section C—Removals from the Register and Liquidations Table Cl Companies removed from the registers, 1988–89 to 1992–93 Thousands of companies April-June July-September October-December January-March 1988–89 1989–90 1990–91 1991–92 1992–93 1992 1992 1992 1993 Great Britain Struck off and dissolved 106.60 72.4 93.6 107.9 137.2 24.7 30.9 41.8 39.8 Wound up voluntarily or subject to the supervision of the Court under the Companies Acts 12.3 13.2 11.8 11.9 16.7 3.7 4.2 3.6 5.2 Total removed from the register Less: 118.3 85.6 105.4 119.9 153.9 28.4 35.1 45.4 45.0 Restorations to the register 1.2 1.5 1.4 1.2 1.4 0.3 0.3 0.3 0.5 Net total of removals 117.1 84.1 104.0 118.7 152.5 28.1 34.8 45.1 44.5 England and Wales Struck off and dissolved 103.0 69.0 88.6 102.9 131.1 23.7 29.0 40.5 37.9 Wound up voluntarily or subject to the supervision of the Court under the Companies Acts 11.7 12.6 11.3 10.9 16.1 3.6 4.1 3.4 5.0 Total removed from the register Less: 114.7 81.6 99.9 113.8 147.2 27.3 33.1 43.9 42.9 Restorations to the register 1.1 1.4 1.3 1.1 1.3 0.3 0.3 0.3 0.4 Net total of removals 113.6 80.2 98.6 112.7 145.9 27.0 32.8 43.6 42.5 Scotland Struck off and dissolved 3.0 3.4 5.0 5.0 6.1 1.0 1.8 1.3 1.9 Wound up voluntarily or subject to the supervision of the Court under the Companies Acts 0.6 0.6 0.5 1.1 0.6 0.1 0.2 0.1 0.1 Total removed from the register Less: 3.6 4.0 5.5 6.1 6.7 1.2 2.0 1.5 2.1 Restorations to the register 0.1 0.1 0.1 0.1 1— 1— 1— 1— 1— Net total of removals 3.5 3.9 5.4 6.0 6.6 1.1 2.0 1.4 2.0 1—Fewer than 50 companies.
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Table C2 Liquidations and receiverships notified, 1988–89 to 1992–93 Number of companies April-June July-Septmber October-December January-March 1988–89 1989–90 1990–91 1991–92 1992–93 1992 1992 1992 1993 Great Britain Compulsory Liquidations 3,789 4,655 7,043 9,210 9,861 2,681 1,804 2,879 2,497 Creditors' voluntary Liquidations 6,011 6,981 10,610 14,127 15,164 3,521 3,957 3,787 3,899 Total insolvencies 9,800 11,636 17,653 23,337 25,025 6,202 5,761 6,666 6,396 Members' voluntary Liquidations 4,063 4,215 4,172 3,985 3,719 905 693 931 1,190 Total Liquidations 13,863 15,851 21,825 27,322 28,744 7,107 6,454 7,597 7,586 Receiverships notified 1,252 2,423 5,580 8,756 7,815 1,987 1,962 1,959 1,907 Administrator appointments 187 160 237 176 123 37 54 15 17 Company voluntary arrangements 52 49 75 129 67 16 23 12 16 England and Wales Compulsory Liquidations 3,544 4,433 6,786 8,911 9,542 2,609 1,710 2,796 2,427 Creditors' voluntary Liquidations 5,837 6,783 10,378 13,808 14,786 3,434 3,867 3,677 3,808 Total insolvencies 9,391 11,216 17,164 22,719 24,328 6,043 5,577 6,473 6,235 Members' voluntary 3,809 3,984 3,941 3,741 3,501 851 659 852 1,139 Liquidations Total Liquidations 13,200 15,200 21,105 26,460 27,829 6,894 6,236 7,325 7,374 Receiverships notified 1,133 2,266 5,327 8,503 7,522 1,904 1,899 1,906 1,813 Administrator appointments 179 152 222 162 121 36 53 15 17
April-June July-Septmber October-December January-March 1988–89 1989–90 1990–91 1991–92 1992–93 April-June 1992 July-September 1992 October-December 1992 January-March 1993 Company voluntary arrangements 52 49 75 129 67 16 23 12 16 Scotland Compulsory Liquidations 235 222 257 299 319 72 94 83 70 Creditors' voluntary Liquidations 174 198 232 319 378 87 90 110 91 Total insolvencies 409 420 489 618 697 159 184 193 161 Members' voluntary Liquidations 254 231 231 244 218 54 34 79 51 Total Liquidations 663 651 720 862 915 213 218 272 212 Receiverships notified 119 157 253 253 293 83 63 53 94 Administrator appointments 8 8 15 14 2 1 1 0 0 Company voluntary arrangements 0 0 0 0 0 0 0 0 0
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Table D3 Prosecutions by the Department under the Companies Act 1985 Section and Offence 1988–89 1989–90 1990–91 1991–92 1992–93 England and Wales 241(3) and 243(1) Failure to deliver Accounts (Number of Offences) Prosecutions 4,543 4,443 5,680 7,534 6,451 Convictions 2,452 2,513 3,030 3,270 3,315 Percentage convictions 54.0 56.6 53.3 43.4 51.4 Number adjourned to a later hearing date 287 196 386 527 309 Number of charges where a conviction was not obtained 1,764 1,614 2,271 3,667 2,770 365(3) Failure to deliver Annual Returns (Number of Offences) Prosecutions 2,467 2,359 3,050 3,780 3,843 Convictions 1,269 1,245 1,581 1,549 1,897 Percentage convictions 51.4 52.8 51.8 41.0 49.4 Number adjourned to a later hearing date 137 108 212 286 152 Number of charges where a conviction was not obtained 1,032 930 1,282 1,921 1,708 Number of directors involved in proceedings 2,639 2,800 3,356 4,122 3,421 Number of directors convicted 1,125 1,558 1,864 1,661 1,826 Percentage directors convicted 42.6 55.6 55.5 40.3 53.4 Number of companies involved in proceedings 1,595 1,763 2,208 2.504 2,145 Number of companies in which directors convicted 956 1,005 1,284 1,080 1,168 Percentage companies in which directors convicted 59.9 57.0 58.2 43.1 54.5 Scotland 241(3) and 243(1) Failure to deliver Accounts (Number of Offences) Prosecutions 178 368 258 1,159 587 Convictions 35 55 52 210 98 Percentage convictions 19.7 14.9 20.2 18.1 16.7 Number adjourned to a later hearing date 0 0 0 0 0 Number of charges where a conviction was not obtained 143 313 206 949 489 365(3) Failure to deliver Annual Returns (Number of Offences) Prosecutions 58 160 122 381 462 Convictions 18 22 46 34 48 Percentage convictions 31.0 13.8 37.7 8.9 10.4 Number adjourned to a later hearing date 0 0 0 0 0 Number of charges where a conviction was not obtained 40 138 76 347 414 Number of directors involved in proceedings 358 309 497 835 767 Number of directors convicted 53 77 98 55 89 Percentage directors convicted 14.8 10.9 19.7 6.6 11.6
Section and Offence 1988–89 1989–90 1990–91 1991–92 1992–93 Number of companies involved in proceedings 180 347 251 442 406 Number of companies in which directors convicted 33 40 40 32 60 Percentage companies in which directors convicted 18.3 11.5 15.9 7.2 14.8 Notes:
1. The majority of charges where convictions were not obtained was as a result of the annual returns and accounts being filed and the prosecutions not proceeded with.
2. A number of prosecutions dealt with in the above were started before April 1992.
Table F2 Annual accounts registered at Companies House by type, 1989–90 to 1991–92 Thousands and percentages 1989–90 000s Percentage 1990–91 000s Percentage 1991–92 000s Percentage 1992–93 000s Percentage Great Britain Full 443.9 55.8 425.2 54.3 436.8 53.0 453.2 51.3 Abbreviated: Small 253.7 31.9 252.3 32.2 268.2 32.5 300.1 34.0 Medium 3.6 0.5 3.8 0.5 4.4 0.5 5.2 0.6 Group 21.8 2.7 24.0 3.1 22.2 2.7 19.2 2.2 Dormant 71.6 9.0 78.1 10.0 92.7 11.2 106.0 12.0 Interim/initial 0.2 0.0 0.2 0.0 0.2 0.0 0.2 0.0 Total 794.8 100.0 783.6 100.0 824.3 100.0 883.8 100.0 England and Wales Full 421.7 55.9 403.4 54.4 415.4 53.2 430.6 51.5 Abbreviated: Small 239.9 31.8 237.7 32.0 252.7 32.3 281.6 33.7 Medium 3.4 0.4 3.5 0.5 4.1 0.5 4.8 0.6 Group 20.7 2.7 22.7 3.1 20.9 2.7 18.0 2.2 Dormant 68.5 9.1 74.4 10.0 88.3 11.3 101.0 12.1 Interim/initial 0.2 0.0 0.2 0.0 0.2 0.0 0.2 0.0 Total 754.3 100.0 742.0 100.0 781.6 100.0 836.1 100.0 Scotland Full 22.2 54.8 21.8 52.4 21.3 49.8 22.7 47.6 Abbreviated: Small 13.9 34.2 14.6 35.1 15.5 36.3 18.5 38.8 Medium 0.2 0.6 0.2 0.6 0.3 0.7 0.4 0.8 Group 1.1 2.7 1.3 3.2 1.3 3.0 1.1 2.4 Dormant 3.1 7.6 3.6 8.7 4.3 10.1 5.0 10.4 Interim/initial 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 Total 40.5 100.0 41.6 100.0 42.7 100.0 47.6 100.0
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Table F3 Compliance rates for annual returns and accounts 1988 to 1993 Thousands of companies Per cent of effective register June 1988 June 1989 June 1990 June 1991 June 1992 September 1992 December 1992 March 1993 June 1993 Great Britain Effective register 917 985 1,016 984 974 973 969 960 954 Companies up-to-date in filing: Annual returns 814 859 916 846 874 875 876 866 870 Percentage 88.8 87.2 90.1 86.0 89.7 90.0 90.4 90₷2 91₷2 Accounts 783 831 874 850 894 902 904 883 898 Percentage 85.4 84.4 86.0 86.4 91.8 92.7 93.3 92.0 94.2 Both returns and accounts 734 774 829 769 828 835 840 823 841 Percentage 80.0 78.6 81.6 78.2 85.0 85.8 86.7 85.7 88.1 Companies in default: Total Per cent 20.0 21.4 18.4 21.8 15.0 14.2 13.3 14.3 11.9 England and Wales Effective register 872 936 964 931 921 919 915 906 900 Companies up-to-date in filing: Annual returns 775 817 868 799 825 825 826 817 821
June 1988 June 1989 June 1990 June 1991 June 1992 September 1992 December 1992 March 1993 June 1993 Percentage 88.8 87.3 90.0 85.8 89.6 89.8 90.3 90.1 91.2 Accounts 742 787 827 802 844 851 853 833 848 Percentage 85.1 84.1 85.7 86.1 91.6 92.6 93.2 92.0 94.2 Both returns and accounts 697 734 784 725 781 787 792 776 792 Percentage 79.9 78.4 81.3 77.9 84.8 85.6 86.5 85.6 88.0 Companies in default: Total Per cent. 20.1 21.6 18.7 22.1 15.2 14.4 13.5 14.4 12.0 Scotland Effective register 45 52 53 53 53 54 54 54 54 Companies up-to-date in filing: Annual returns 39 42 48 47 49 50 50 49 50 Percentage 87.0 86.2 92.0 88.8 91.5 93.3 92.5 91.8 92.5 Accounts 41 44 47 48 50 51 51 50 51 Percentage 92.0 90.7 91.1 91.8 93.5 94.3 94.3 92.7 94.1 Both returns and accounts 37 40 45 44 47 48 48 47 48 Percentage 82.2 81.8 87.1 84.2 88.0 90.2 90.0 87.8 89.4 Companies in default: Total Per cent. 17.8 18.2 12.9 15.8 12.0 9.8 10.0 12.2 10.6