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Unregulated sector is booming - Company Strike offs nearly double in 5 years

It looks like the unregulated company sector is booming and government hostility to the regulated insolvency profession is producing a boom in the number of strike offs and a reduction in the number of company rescues.  Administrations are being regulated out of existence by the Goverment, but transferring assets to a new company and allowing the old company to be struck off, by breaching company law in failing to file accounts, is all the rage.  No report on the conduct of the directors is prepared in a strike off and with well over 1,000 strike offs per day, no one can effectively monitor what happens within those companies.  Only 8,000 companies are restored to the register which suggests HMRC simply cannot cope with the volume of strike offs.  The cost to the tax payer in lost revenue is estimated at over £10 bn.  Official statistics bear out the boom in the unregulated sector.

 

      Compulsory
liquidations
Creditors'
voluntary
liquidations
Administration orders converted to creditors voluntary liquidations Members'
voluntary
liquidations
Total
liquidations
Receiverships
notified
Administrator
appointments
(Enterprise Act)
Company
voluntary
arrangements
2011     5,695 12,046 1,262 3,899 22,902 1,617 3,034 792
2012     5,367 12,295 1,041 4,616 23,319 1,509 2,773 895
2013     4,236 11,606 960 5,589 22,391 1,200 2,523 612
2014     4,373 10,791 902 6,792 22,858 919 1,885 616
2015     3,665 10,153 656 8,499 22,973 645 1,699 413
2016     3,537 10,414 453 11,105 25,509 528 1,750 379
2017     3,402 12,942 459 8,278 25,081 386 1,592 332

 

  Removals From the Register, United Kingdom
 
                     
      Struck off and
dissolved
Wound up voluntarily
or subject to the supervision of the Court under the Companies Act
Total removed
from the register
Restorations to the register Net total
of removals
     
2011     278,121 20,951 299,072 5,413 293,659      
2012     267,744 21,050 288,794 5,102 283,692      
2013     295,780 23,027 318,807 5,079 313,728      
2014     348,327 25,110 373,437 5,542 367,895      
2015     337,120 22,895 360,015 6,236 353,779      
2016     436,441 23,460 459,901 7,545 452,356      
2017     446,559 24,395 470,954 7,919 463,035      

 

2017

Unregulated: 446,559

Regulated: 24,395