Missed deadline for filing annual returns
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- Created: Saturday, November 05 2016 12:38
Section 343 of the Companies Act 2014 (“the Act”) has introduced a new mechanism for companies that have missed the deadline for filing an Annual Return to the Companies Registration Office (“the CRO”).
Consequences for a company that misses this deadline include an imposition of a late filing penalty, the loss of the company’s audit exemption, prosecution of the company and/or its directors, and/or the possible involuntary strike-off and dissolution of the company.
Prior to the commencement of the Act on 1st June 2015, it was possible for a company to apply to the High Court for an order extending the time in which to file its Annual Return. It is now possible to make this application in the District Court also, where the costs of the application are substantially lower. The District Court may, if it satisfied and just to do so, make an order extending the time in which the Annual Return of the company may be delivered to the Registrar of Companies.
The application for an extension of time is made to the District Court in which the company’s registered office is situated. The application is grounded on an Affidavit sworn by the Director or Secretary of the company which sets out the reasons for the delay in filing the Annual Return and why it would be just for the Court to order an extension of time.
The CRO must be notified of the application, by serving a copy of the relevant documents on the CRO not later than 21 days before the hearing date. Following receipt of the documentation, the CRO will issue a letter to the applicant company/its solicitor and will send a copy of the letter to the relevant District Court Office. The requisite documentation in respect of the application must be filed by the company/its solicitor with the District Court Office not later than four days before the application date.
If the court order extending the time in which to file is granted, the Order will show; (a) the date to which the extension is granted; and (b) the date by which the order must be delivered to the CRO (which is normally 28 days).