Companies in Receivership – CRO Announces Alteration of Company Status Description
For those who use the CRO to check the status of companies that they deal with, the CRO has announced a change to the manner in which it presents information when a receiver is appointed to the property of a company.
With effect from 22nd March 2017 when a receiver is appointed to some or all of the property of a company, the company’s status will continue to read “Normal” or “Liquidation” (where appropriate) on the Register with a note immediately below alerting interested parties to the fact that a Form E8 has been filed. The status of the Company will not change to “Receivership”.
Where the existing status of a company is “Receivership”, the status will now revert back to “Normal”. Where the existing status of a company is “Receiver/Liquidator”, the status will now be “Liquidation”.
This change has been made in light of a recent Court of Appeal judgment which found that the Registrar is entitled to file the Form E8 but cannot change the status of the Company from “Normal” to “Receivership”.