Companies Act 2006 s.1006 – Copy of application to be given to members, employees, etc

(1)A person who makes an application under section 1003 (application for voluntary striking off) on behalf of a company must secure that, within seven days from the day on which the application is made, a copy of it is given to every person who at any time on that day is—

(a)a member of the company,

(b)an employee of the company,

(c)a creditor of the company,

(d)a director of the company,

(e)a manager or trustee of any pension fund established for the benefit of employees of the company, or

(f)a person of a description specified for the purposes of this paragraph by regulations made by the Secretary of State.

Regulations under paragraph (f) are subject to negative resolution procedure.

(2)Subsection (1) does not require a copy of the application to be given to a director who is a party to the application.

(3)The duty imposed by this section ceases to apply if the application is withdrawn before the end of the period for giving the copy application.

(4)A person who fails to perform the duty imposed on him by this section commits an offence.

If he does so with the intention of concealing the making of the application from the person concerned, he commits an aggravated offence.

(5)In proceedings for an offence under this section it is a defence for the accused to prove that he took all reasonable steps to perform the duty.

(6)A person guilty of an offence under this section (other than an aggravated offence) is liable—

(a)on conviction on indictment, to a fine;

(b)on summary conviction, to a fine not exceeding the statutory maximum.

(7)A person guilty of an aggravated offence under this section is liable—

(a)on conviction on indictment, to imprisonment for a term not exceeding seven years or a fine (or both);

(b)on summary conviction—

(i)in England and Wales, to imprisonment for a term not exceeding twelve months or to a fine not exceeding the statutory maximum (or both);

(ii)in Scotland or Northern Ireland, to imprisonment for a term not exceeding six months, or to a fine not exceeding the statutory maximum (or both).

Read section 1006 in the full Act → Definitions (4) Cases (3)

Definitions used in section 1006

company: “company” means a company formed and registered under this Act, that is—

(a)
a company so formed and registered after the commencement of this Part, or

(b)
a company that immediately before the commencement of this Part—
(i)
was formed and registered under the Companies Act 1985 (c. 6) or the Companies (Northern Ireland) Order 1986 (S.I. 1986/1032 (N.I. 6)), or

(ii)
was an existing company for the purposes of that Act or that Order,

(which is to be treated on commencement as if formed and registered under this Act).

Defined in s.1(1) · see it in the full Act; (4) In this section and that Schedule “company” includes any body corporate.
Defined in s.1159(4) · see it in the full Act
member: (2) In sub-paragraph (1) “member” has the same meaning as it has by virtue of section 7(1) of that Act .
Defined in Sch.2 Pt.1 · see it in the full Act
creditor: In this Chapter “creditor” includes a contingent or prospective creditor.
Defined in s.1011 · see it in the full Act
director: In the Companies Acts “director” includes any person occupying the position of director, by whatever name called.
Defined in s.250 · see it in the full Act

Cases considering section 1006 (3)

Hurstwood Properties (A) Ltd and others v Rossendale Borough Council and another

[2021] UKSC 16 · 14 May 2021

A director applying for voluntary striking off must secure notification of every creditor, including prospective creditors, within seven days. The duty was relevant to whether the scheme involved unlawful concealment from rating authorities (see paras [39]; [41]). Failure to notify a creditor is an offence, aggravated where intended to conceal the application. If the alleged practice of deliberately withholding notice from a rating authority were proved, the scheme would have involved the aggravated offence (see paras [39]; [41]).

Pickering & Ors v Davy

[2017] EWCA Civ 30 · 24 January 2017

The failure to notify the claimant of the striking-off application was relevant to the counterfactual inquiry. Notice might have prompted further steps, but the evidence did not show that those steps would probably have been taken. (see paras [69]-[71])

Davy v Pickering & Ors

[2015] EWHC 380 (Ch) · 19 February 2015

The court treated the alleged failure to notify a creditor of the voluntary striking-off application as relevant to the lost opportunity which the consequential directions sought to restore (see paras [19], [39]).

What each judgment says about section 1006 is in the case-law panel in the full Act.

Amendments and notes

3 notes from legislation.gov.uk

Modifications

C1373Ss. 1003-1011 applied (with modifications) (1.10.2009) by The Limited Liability Partnerships (Application of Companies Act 2006) Regulations 2009 (S.I. 2009/1804), regs. 2, 51 (as amended: (10.10.2015) by The Companies and Limited Liability Partnerships (Filing Requirements) Regulations 2015 (S.I. 2015/1695), regs. 1, 5(4); (26.6.2020) by The Limited Liability Partnerships (Amendment etc.) Regulations 2020 (S.I. 2020/643), reg. 1(1), Sch. 3 para. 4 (which amending S.I. is revoked (16.2.2021) by S.I. 2021/60, reg. 1(1), 2); and (16.2.2021) by The Limited Liability Partnerships (Amendment etc.) Regulations 2021 (S.I. 2021/60), reg. 1(1), Sch. 3 para. 4 (with reg. 4(2)))
C1376S. 1006(4)-(7) applied (with modifications) (E.W.) (2.1.2013) by The Charitable Incorporated Organisations (Insolvency and Dissolution) Regulations 2012 (S.I. 2012/3013), regs. 1, 12(5)(6)

Commencement

I341S. 1006 wholly in force at 1.10.2009; s. 1006 not in force at Royal Assent, see s. 1300; s. 1006 in force for specified purposes at 20.1.2007 by S.I. 2006/3428, art. 3(3) (subject to art. 5, Sch. 1 and with arts. 6, 8, Sch. 5); s. 1006 otherwise in force at 1.10.2009 by S.I. 2008/2860, art. 3(o) (with arts. 5, 7, 8, Sch. 2) (as amended by S.I. 2009/1802, art. 18) text for certain specified purposes only, see the commentary.