One of the UK’S largest co-operatives
Company overview
- 12 dormant subsidiaries of one of the UK’s largest societies
- All subsidiary companies have traded in the past
- All companies have been dormant for a number of years
- There was a possibility of unrecorded assets or liabilities
The challenge
- Shareholder was concerned about unrecorded asset reverting to government control
- Shareholder wanted to make sure that the intercompany balances were satisfied
- Shareholder wanted the companies wound up or dissolved.
Moorfields Action
- Prior to the liquidation, land registry searches were undertaken to identify properties
- Discovered a freehold property was owned by one of the dormant companies
- Distributed over £50,000 of intercompany debt
- Agreed Corporation Tax Liability with HMRC
- Removed, where appropriate the companies from the main VAT group
The result
- Returned cash to shareholders in accordance with agreed timetable
- By identifying unknown assets the shareholder was able to adapt its strategy accordingly
- Reduce the amount of time management spend dealing with annual returns and accounts of dormant companies
- Successfully wound up 11 of the 12 companies, the 12th being withdrawn as a result of the assets identified by Moorfields.
