When reviewing a company’s status on Companies House, you may come across the phrase “Active proposal to strike-off.” This can be confusing for directors, creditors, and other stakeholders — especially if you’re unsure of what it means or what happens next.
At Aurora Recovery, we support business owners through every step of the company life cycle, including dissolution and insolvency. Here’s what you need to know if your company — or one you’re dealing with — shows this warning.
🔍 What Does “Active Proposal to Strike Off” Mean?
This status means that a company is in the process of being voluntarily removed from the Companies House register — in other words, the company is proposing to cease trading and dissolve. The strike-off can be initiated by:
- The company directors – who voluntarily apply for the strike off using Form DS01
- Companies House itself – if the company appears dormant or fails to file necessary documents like accounts or confirmation statements
Once the proposal is submitted, Companies House will publish a notice in the Gazette, giving others (such as creditors or HMRC) the opportunity to object.
🚫 Can a Strike-Off Be Suspended or Stopped?
Yes — and this is where things can get serious.
An active strike-off can be objected to or suspended if:
- The company has outstanding debts
- A creditor, such as HMRC, believes the company is attempting to avoid payment
- The business is subject to legal proceedings
- There is an ongoing insolvency process (e.g., a liquidation or administration)
If someone submits an objection, Companies House will suspend the process and update the company’s status to reflect this.
⏱️ What Happens After a Suspension?
If the strike-off is suspended:
- The company remains legally active and must still meet filing obligations
- Directors could face penalties if filings remain overdue
- Creditors may begin or continue legal action to recover debts
- The company could be placed into compulsory liquidation if debts go unpaid
Essentially, a suspended strike-off is a red flag — it means someone has raised concern, often due to outstanding liabilities or ongoing investigations.
🛑 Why You Should Never Ignore This Status
If you’re a director and you see your company listed as “Active proposal to strike off,” do not assume it’s the end of your responsibilities. You are still legally obligated to maintain accurate records, cooperate with creditors, and not dispose of assets inappropriately.
Continuing to trade or dissipate assets after applying to strike off — especially while insolvent — can result in personal liability, disqualification, or even criminal charges.
✅ What Should Directors Do?
If you’re unsure about your company’s status or you’re facing strike-off proceedings, here are your next steps:
- ✔ Check who initiated the strike-off – was it voluntary or automatic?
- ✔ Stop trading immediately – especially if the company may be insolvent
- ✔ Seek professional advice – speak to an insolvency expert to understand your options
- ✔ Don’t ignore creditor objections – address them promptly to avoid escalation
- ✔ Consider a formal insolvency process – such as a Creditors’ Voluntary Liquidation (CVL) if the company cannot meet its obligations
At Aurora Recovery, we can help assess your situation and determine the best course of action — whether that’s allowing the strike-off to proceed, formally winding up the company, or exploring rescue options.
📞 Need Help? Speak to Aurora Recovery Today
Striking off a company may seem like a clean exit, but if done incorrectly — or too soon — it can open directors up to serious consequences. Let Aurora Recovery guide you through the process safely and legally.
📞 Call us: 01134 800 397
📧 Email us: hello@aurorarecovery.co.uk
🌐 Visit: https://aurorarecovery.co.uk
Contact us now to see how we can help you: https://aurorarecovery.co.uk/contact/
Read more about applying to strike off a company on the government’s website, here: https://www.gov.uk/strike-off-your-company-from-companies-register/apply-to-strike-off
