Define: Striking Of A Company

The striking of a company refers to the process by which a company’s name is removed or struck off from the official register of companies maintained by the relevant government authority. This typically occurs when a company ceases to carry on its business operations, becomes defunct, or fails to comply with legal requirements, such as filing annual returns or paying fees. Striking off a company effectively dissolves it as a legal entity, and its assets may be deemed bona vacantia or transferred to the state. The striking-off process is governed by specific legal procedures and requirements outlined in company law, and it may involve notifications to creditors, shareholders, and other stakeholders. Once a company is struck off, it ceases to exist as a legal entity, although certain liabilities or obligations may still apply to its directors or officers.

The Registrar of Companies is entitled to dissolve defunct companies. The company is then ‘struck off’ the register of companies. This is important because defunct companies will otherwise continue to exist, even if they have no members.

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This glossary post was last updated: 29th March, 2024.