§ Mr. Nigel GriffithsTo ask the President of the Board of Trade what steps were taken by his Department to protect the public after Companies House struck Tours Direct off its register.
§ Mr. Neil Hamilton[holding answer 24 January 1994]: This matter is for Companies House. I have, therefore, asked the chief executive to write to the hon. Member.
Letter from David Durham to Mr. Nigel Griffiths, dated 24 January 1994:
You tabled the following Parliamentary Question:To ask the President of the Board of Trade, what steps were taken by this Department to protect the public after Companies House struck Tours Direct off their register".As this matter is my responsibility as Chief Executive and Registrar of Companies House, I am writing to you direct.Section 652 of the Companies Act 1985, provides me with authority to dissolve companies which I have reasonable cause to believe are no longer carrying on in business or in operation.In the case of Tours Direct Limited, correspondence received from accountants acting on behalf of the company, indicated that the company was no longer carrying on in business or in operation. Accordingly, formal inquiry letters were issued to the company at its registered office in accordance with the requirements of section 652(1) and 652(2) of the Companies Act 1985.A director of the company subsequently confirmed that the company was no longer in operation and a notice was published in the London Gazette on 29 June 1993, of my intention to strike the company off the register at the expiration of 3 months, unless cause was shown to the contrary. A copy of this notice was placed on the public file and sent to the company on the same date.221WIn the absence of any objections to this action being received, the company was struck off the register on 10 October 1993 and dissolved by notice in the London Gazette of 19 October 1993. To date, I have not received any complaints concerning the removal of the company name from the register.As to the matter of protection afforded to the public, section 653 of the Companies Act 1985 enables any creditor of a dissolved company to petition the Court to restore the name of the company to the register. Once restored, a company is deemed to have continued in existence as if its name had not been struck off. In addition, the Court may also give such directions and make such provisions as seem just for placing the company and all other persons in the same position, as nearly as may be, as if the company's name had not been struck off.I trust that I have interpreted the question which you have tabled correctly and that I have covered the points raised. Should you, however, require any additional information please do not hesitate to contact me.