Contact

Companies house owes a duty of care to ensure that winding up orders are not registered against the wrong company

  1. Home
  2. Latest
  3. Companies House owes a duty of care

Companies house owes a duty of care to ensure that winding up orders are not registered against the wrong company

Companies house owes a duty of care to ensure that winding up orders are not registered against the wrong company

A winding up order was made against a company called Taylor and Sons Limited but Companies House registered a winding up order against the wrong company, which had an almost identical name - Taylor and Son Limited.

The Court held that Companies House did owe a common law duty of care, when entering a winding-up order on the companies register, to take reasonable care to ensure that the order was not registered against the wrong company and was therefore liable to a claim for damages. The registration of the order against the wrong company was described as disastrous because on learning of the winding-up order against that company, suppliers refused it further credit and the bank refused to lend it further money. This highlights the need to ensure that your company secretarial processes involve checking the information noted against your company.

Sebry v Companies House [2015] EWHC 115 (QB); [2015] B.C.C 236

For more information, contact Cathy Goodman.