What is The Gazette? All you need to know about the London Gazette concerning business closures

Ryan Patrick

• 6 min read
What is The Gazette? All you need to know about the London Gazette concerning business closures

The Gazette is the official journal of records with three publications, which include The London Gazette, The Belfast Gazette, and The Edinburgh Gazette located in the United Kingdom.

London Gazette - England and Wales

Belfast Gazette - Northern Ireland

Edinburgh Gazette - Scotland

It is one of the oldest news publications in Britain, established in 1665 by Charles II. It was also a useful tool for researchers and family historians.

The Gazette is an official record of the United Kingdom. The Gazette has a special place in British history. Charles II founded the Oxford Gazette in 1665. A year later, it changed its name to the London Gazette.

With this change came its relocation to London, where it was used as the main vehicle for the public notification of formal government appointments, notices of bankruptcy, and other legal announcements. After explaining what is the gazette, here's all you need to know about the London Gazette concerning business closure.

London Gazette

The Great Plague had just hit London, forcing the Royal Court to move; therefore, publishing started at Oxford. The Court had relocated back to London by the time the 24th edition was published; therefore, the name was changed to the London Gazette.

The Gazette has been a leading source of information for legal notices, state appointments, and other announcements deemed important by the government since its founding. The format and content of the Gazette have changed significantly over time.

The London Gazette has maintained its function as an official record-keeping journal, which has not changed. It has recorded important historical events, including wars and changes in government. It also represented the government's position during both World Wars and had in-depth reports from the Napoleonic Wars.

The London Gazette is an invaluable resource for anyone with an interest in British law or history.

When an organization fails to comply with its financial and accounting obligations, an application is sent to forcefully close the company. The application is called the First Gazette Notice for compulsory strike-off.

During the close-off, the gazette (journal) serves as an outlet for official announcements related to insolvency, liquidation, and other corporate events that are mandated by law to be publicly disclosed.

This journal notifies everyone associated with the business to back off to avoid partaking in the damage that comes with forced business closure. When partners and associates see the notice of Compulsory Strike-off, they tend to quickly recover debts owed by the organization and also try to pull out their assets before closure.

This Compulsory Strike-off causes irreversible reputational harm to directors and means creditors may never collect debts that are due from the business. Directors and management do everything possible to avoid a forcible closure of business, as it can create an irrecoverable bad image for their brand.

The first gazette notice of compulsory strike-off is sent three months before the expected action is taken. If nothing is done after three months, another notice of compulsory strike-off will be issued. This new notice is called the Second Gazette Notice.

Why Would a Company be Given a Gazette Notice of Compulsory Strike-off?

If a company fails to comply with federal laws and other important regulations, this may attract notice of closure from the authorities. These compliance failures may include

  • Failure to file tax returns
  • Irregularities in account statements
  • Insolvency
  • Non-compliance with legal requirements.
  • Failure to declare a new company address
  • Liquidation

Companies House will make formal attempts to get in touch with the company directors or persons of significant control should a company violate any regulations. Before publishing a first gazette notice for a mandatory strike-off, which is a last-resort measure, this will occur at least twice.

What Should I Do if I Receive A First Gazette Notice?

Get in touch with Companies House immediately, if you wish to prevent your business from being forcefully removed from the register. You'll need to file for suspension and address the problems that led them to act in that way.

If your business no longer renders services, you can choose not to do anything after the London Gazette notice of compulsory strike-off.

After the first gazette notice, you have between two and three months to either object to or accept the London Gazette Notice of compulsory strike off.

If you'd like to object, you should contact Companies House immediately with valid reasons.

Companies House always sends in a notice when a default has occurred twice or more.

Can I Appeal if I'm Being Served a Gazette Notice of Compulsory Strike-off?

A company or affected business can appeal on these grounds:

1. The Business Still has Ongoing Transactions

Inactivity is one of the main reasons why businesses receive a London Gazette notice for a mandatory strike-off. Businesses that have stopped operating and don't reply to Companies House's demands for crucial records will probably soon get a notice in the Gazette. Occasionally, though, a Gazette notice is sent to an operating firm that has inadvertently forgotten to file its accounts. If your business is in this circumstance, you might be able to challenge the notice if you can offer proof of action.

2. The Business is Going Through Bankruptcy

When the issue of bankruptcy has gotten to the point where the company is unable to pay its stakeholders and debt, a London Gazette notice of compulsory strike-off will be sent. As a business owner, you can appeal to the Companies House, stating reasons why they shouldn’t strike off your business. If your case has been reviewed, the House may accept or reject your appeal.

A company engrossed in legal battles does not have a good reputation for its brand. Legal battles could stem from noncompliance with rules, defaulting in obtaining the relevant licenses and permits, and fraudulent activities. The British government can demand business closures when the legal battle is consistent.

4. The Business is Currently Relocating its Registered Office

If the reason for receiving the first gazette notice is due to non-submission of the business address, you can appeal to the Company House. If your business is currently relocating its registered office, this is a good reason for an appeal.

5. The Warning was Sent out in Error, and the Company's Statutory Filings are Current

There are cases where first gazette announcements may be sent out in error. This could indicate a few different things. Errors can result in some companies receiving a first-ever Gazette notification that was not intended for them.

For others, it will include getting a notice in the Gazette that is incomplete or contains inaccurate information. Any error in the Gazette notice filing, in any event, is a good reason to file an appeal, which should work out favourably for your business. Nevertheless, a revised Gazette notice may still be delivered in the future.

What Will Happen to My Assets if I'm Served Gazette Notice of Compulsory Strike-off?

A firm will become vacant, and then handed over by the law to the Crown if it is shut off with assets or accounts still in its name. The Crown will receive your accounts and assets with the money taken in going into the public coffers.

Make sure all of your assets are out of your firm before it is struck off to keep possession of them. To do this, there are two methods. First, you may sell the company's assets and take the money with you. If you would rather keep the assets, you could transfer them to a new business and out of the firm that is being struck off.

If you are found in this situation, it is best to hire a licensed insolvency practitioner. They may provide expert advice on how to effectively manage the situation and make sure everything is done in compliance with the law. You can speak with one of Incorpuk expert here.

Consequences of Ignoring London Gazette Notice of Compulsory Strike-off?

Ignoring a gazette notice can lead to severe repercussions which will make the government take serious measures, including:

  1. Compulsory closure: Companies House can forcibly dissolve the company, ending its legal existence.
  2. Asset Seizure: The Crown may take possession of the company's assets if it dissolves.
  3. Bad Credit: If the company's credit rating declines, it may be more difficult for it to obtain financing in the future.
  4. Legal Repercussions for Directors: If wrongful trading is discovered, directors may be held personally liable.

What Will Happen if I Object to the Business Closure?

A limited company's removal from the Companies House Register may be challenged if:

You can prevent the firm from being removed from the register if you are a shareholder or another interested party, like a creditor; for instance, you may have a legal claim against them or they may owe you money.

The Gazette must publish notice of the company's impending strike before you may raise an objection.

To back up your objection, you must provide proof, such as invoices or other documents proving the business owes you money.

Can I Access the London Gazette Online?

Access to every issue of the publication is available online on the London Gazette website.

Final Note

This article contains all you need to know about the London Gazette which will help you navigate the process when you receive such notice for your business. It is advisable to hire an insolvent expert to assist you in case of appeal. Incorpuk helps business owners find solutions to legal issues relating to businesses in the United Kingdom. Contact Incorpuk here today.