What Does Active Proposal to Strike Off Mean

What Does Active Proposal to Strike Off Mean?

If you've been looking up a UK company on Companies House and seen the status marked as “Active  Proposal to Strike Off,” it can spark a bit of confusion or concern. Whether you're a business owner, a customer or a creditor, it’s important to understand what this phrase actually means—and what actions, if any, you should take in response.

This status is part of how the UK government regulates and maintains an up-to-date public register of companies. It doesn't necessarily mean anything is illegal or shady, but it does signal that a business is on the path to being dissolved. In simple terms, it means the company is in the process of being removed from the Companies House register—either because the directors have chosen to shut it down, or because the government is initiating the closure due to inactivity or non-compliance.

The Meaning Behind “Active – Proposal to Strike Off”

The term itself can sound contradictory. If a company is "active," how can it be proposed for strike off? The answer lies in how Companies House uses these statuses. An “active” company is one that’s still technically registered and hasn’t yet been dissolved. However, the “proposal to strike off” part indicates that steps are being taken to remove it from the official register. It’s a transitional status, a sort of legal limbo.

A strike off is a formal procedure that leads to a company being dissolved, or legally shut down. This means it will cease to exist as a legal entity. The process is initiated through an application to Companies House, and once the proposal is published, it opens the door for interested parties like HMRC, creditors, or shareholders to object if necessary.

Why Would a Company Be Proposed for Strike Off?

There are two primary reasons a company might be flagged for strike off: voluntary and involuntary.

A voluntary strike off happens when the company directors decide they no longer want the company to operate. This might be due to retirement, the business becoming inactive, or plans to restructure. In this case, the directors file a DS01 form with Companies House to initiate the closure process. It’s usually a clean and straightforward procedure if the company has no debts or legal disputes.

An involuntary strike off is triggered by Companies House itself, usually because the company has failed to meet its legal obligations. This often happens when annual accounts or confirmation statements haven’t been filed on time. The registry assumes the company is no longer operating and begins proceedings to dissolve it. If the company doesn’t act quickly, it risks being shut down even if it’s still active in reality.

What Happens After the Proposal is Published?

Once Companies House receives a strike off request or identifies grounds for an involuntary strike off, it publishes a notice in The Gazette, an official public record. This notice serves as a warning and gives interested parties two months to lodge an objection.

During this time, the company is still active but under review. It’s not yet struck off, but it’s on the clock. If no objections are raised within the two-month window, the company will be officially removed from the register, and it will cease to exist in the eyes of the law.

However, if someone does object say, HMRC believes there are unpaid taxes, or a creditor is still owed money, the strike off can be paused or cancelled altogether.

Can a Company Still Trade During a Proposal to Strike Off?

Technically, yes but it’s strongly discouraged. If the company continues trading, it could create legal complications, especially if debts are incurred after the strike off process has started. Directors have a legal duty to act in the best interests of creditors during this period. Continuing business as usual while being aware that the company is about to be dissolved could be viewed as negligent or even fraudulent.

The safest course of action is to resolve any outstanding matters—whether financial, legal or administrative before the company is struck off. If necessary, directors can withdraw the strike off application if they change their minds or need more time.

What Should You Do if You See This Status?

If you're a business owner and see this status next to your own company, it’s time to act. You may need to file overdue documents, pay outstanding fees or withdraw a strike off application if you want the company to continue trading.

If you’re a customer or supplier, treat this status as a red flag. It suggests the company may not be operating for much longer. You might want to avoid entering into new contracts or placing orders until the situation is clarified.

If you’re a creditor and you’re owed money by the company, you must act fast. You can file an objection to the strike off and potentially initiate recovery proceedings. If the company is dissolved, it becomes much harder to recover debts.

Can a Company Be Restored After Being Struck Off?

Yes, in certain circumstances. If a company has been struck off but someone believes it was done in error or if they need to access assets or settle claims it is possible to apply for restoration. This must be done through the courts and typically requires legal advice. It’s not a quick or easy process, so it’s best to prevent the strike off in the first place if it’s not truly the desired outcome.

Final Thought

An “active  proposal to strike off” status isn’t the end of the world, but it is something that needs attention. Whether it's part of a planned closure or the result of missed paperwork, it puts the company on notice and invites scrutiny. Understanding what it means allows business owners to respond appropriately and helps others decide how to interact with the business during this uncertain period.