Investigations Into Company Strike off re Covid Grants
In an attempt to restrict the amount of Bounce Back Loan frauds, an Act was recently passed by the government. The purpose of the act is to prevent company strike offs (applications to dissolve companies) where there are outstanding bounce back loans (BBL). The act also allows investigations to be made into companies which have already been dissolved where BBL were outstanding.
As part of the new regime, there has been an increase in the number of applications for company strike offs been rejected by Companies House, following objections from creditors (in particular HMRC and banks).
The behaviour of directors, where BBLs have not been repaid, will also potentially be investigated by the Insolvency Service. The Act allows the Insolvency Service to obtain compensation from directors; in effect the directors can become personally liable for the BBL debts of companies.