Published on: Mar 7, 2009
If something goes very wrong, you may find that your management company has been struck off by the CRO. This means it’s not a legal company any more which is a very bad thing. If the land was transferred to the company, they are now owned by the state. The problems this causes are:
- You may find it difficult to get an insurer to cover the structure of your building
- Mortgage lenders may invalidate the mortgage on an uninsured property
- No-one can issue share certificates so you will find it hard to sell your property
How can this happen?
Generally if no-one is running the company or if they’re not running it properly, the CRO will take action. If accounts are not filed on a regular basis or if the accounts are not accurate, you’ll be struck off. You might not even know this has happened.
How can it be fixed?
It isn’t easy. Generally it depends on how long it has been since the company was struck off. If it was in the last year, you can pay late fees, file your accounts and ask the CRO to reinstate you. This is called the CRO Fastrack Restoration Procedure. If it’s been more than a year, you need to involve lots of state agencies including the High Court. It’s time consuming and expensive but, unfortunately, there’s no alternative. The process involves several steps:
- You must prepare full accounts for every year since the last time the CRO received and accepted accounts.
- Those accounts must be audited individually by chartered auditors.
- The accounts must be submitted to the CRO along with the late filing fee.
- Several bodies must sign letters to the court stating that they have no reasons to object to your company being reinstated. They include (but are possibly not limited to)
- Registrar of Companies
- Chief State Solicitor
- Minister for Enterprise, Trade & Employment
- These people can charge for issuing the letters and, if necessary, for turning up in court.
- Then you must ask file a petition to the High Court. You’ll need to hire a solicitor and a barrister for this.
How much does it cost?
It differs for each case but same figures are supplied below:
- Late Filing fees (~ €4k)
- Solicitors costs (~ €4k)
- Barristers costs (~ €500)
- Letters of notice (~ €700)
- Accountants fees
- Auditors fees
— Thanks to an askaboutmoney.com member who has been through this process for his help.
What other problems could there be?
If the developer is struck off instead of your company and they have not transferred the land to your company, it’s very difficult. You’ll need to petition to the High Court to transfer the land from state ownership to your management company.