Our client, a listed food manufacturer, was seeking to reduce their subsidiaries from 40 to five. A series of acquisitions had increased the number of companies in the group structure, and it had become overly complicated and onerous to manage.
We undertook an in-depth review of each company to establish if there were any potential barriers to the strike off process and if not consider whether it was a candidate for voluntary strike off or liquidation.
Our work required us to overcome several barriers (novating contracts, transferring assets etc). When the entities were ‘clean’ we initiated the dissolution process and begin the process to return capital to the shareholders (where applicable). Where necessary we appointed a liquidator, drafted the various board resolutions and Companies House forms, and convened the required Board/shareholder meetings to approve the documentation. We then arranged all the necessary Companies House filings and updated their group entity structure/organisation chart.
The client benefited significantly from the reduced administration costs of maintaining 35 unnecessary companies and the burdens associated with preparing and filing accounts, confirmation statements and keeping statutory registers up to date.
Our client, the CFO was thrilled with the time saving across the business brought about by the subsidiary rationalisation work and relieved that they could reduce the number of executives also appointed as subsidiary directors and subject to various statutory duties.