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yokel

Dormant Companies

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I'm doing a bit of digging around about an individual involved in a local issue. The individual is one of the two directors (other one is the spouse) of a company which, if it were trading, would be a conflict of interest with the individuals public sector role.

It is dormant.

Why would someone keep a dormant company with the obligations to report annually etc. It is private limited.

Any suggestions gratefully received.

Y

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I'm doing a bit of digging around about an individual involved in a local issue. The individual is one of the two directors (other one is the spouse) of a company which, if it were trading, would be a conflict of interest with the individuals public sector role.

It is dormant.

Why would someone keep a dormant company with the obligations to report annually etc. It is private limited.

Any suggestions gratefully received.

Y

The annual cost of keeping them is £14 so it's not exactly onerous.

Protecting the name and avoiding the cost of forming a new company are the usual reasons.

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Finances. If they were to go bankrupt, I believe they can still remain as a director in those companies which are currently dormant and so overcomes some of the issues of going bankrupt.

Wrong

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Where's the problem?

Might expect to revive the business (whatever it is) when that public office ends.

Maybe the company holds assets they don't want to liquidate. Even if only money in the bank that's more tax-efficient to leave there.

Who cares? Their business.

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Where's the problem?

Might expect to revive the business (whatever it is) when that public office ends.

Maybe the company holds assets they don't want to liquidate. Even if only money in the bank that's more tax-efficient to leave there.

Who cares? Their business.

Thanks all, gives me more of an idea of this area.

The problem could be if the individual steers Local Authority policy in a direction which creates opportunities for businesses such as the dormant one. That is entirely possible, but hasn't happened yet so, as you say, there is no problem at the moment provable

Y

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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