Rectification claims

Companies are subject to statutory filing requirements under the Companies Act 2006 (‘CA 2006’). It is a legal requirement for a company’s officers to keep the information held at Companies House (‘CH’) accurate and up to date. Fines / sanctions otherwise apply. Mistakes do happen; it is common for documents to be submitted which contain factual errors or provide more information than what was intended. Without intervention, those published materials are accessible for the wider public to view.

In such circumstances, what can a company do to rectify filed documentation? In limited cases, CH can agree to vary or correct information voluntarily. Often, companies are required to apply for a court order pursuant to sections 1096 and 1097 of the CA 2006. Once an order is granted, CH must remove any material from the register that the court directs to be removed.

Our team is vastly experienced in making such applications and is well placed to assist in this process.

How can we help?

Step 1

Prepare the application

Upon receipt of instruction, we would assess the error which has arisen in conjunction with the statutory requirements of the CA 2006 to advise upon the prospects of issuing an application.

Provided that CH will not amend its register voluntarily and the legal grounds to make an application are met, we would prepare a ‘Part 8 claim’. The application is generally made up of a claim form, supporting witness statement and draft order and would need to evidence the circumstances under which the offending document was filed and show how the error has or could cause damage to the company. We have resolved issues previously, for example, where information has been disclosed which is personal to a director or where there is sensitive financial information.

Step 2

Contact CH with the draft application

We would enter into discussions with CH on your behalf to agree the contents of the order. If CH do not object to the application and the order being made, it will provide a letter of waiver which can then be presented to the court as part of your application.

Step 3

File the application at court

We would likely issue the application at a local hearing centre where processing times can often be less than larger regional centres or in London. The process is one which can be made on paper – that is the application can be made and granted without the necessity for a formal hearing - thereby dispensing the need to instruct counsel to represent the company at court.

Step 4

Action the court’s decision

If granted by the court, the sealed order is sent to the legal section at CH, who will proceed in removing/rectifying the offending material from the register and publish a copy of the court order as to maintain transparency.

How long would it take?

In our experience, from instruction to rectification of the register, the process takes somewhere between 2 - 3 months, depending upon processing times of both the court and CH.

How much would it cost?

Our invoices will be based upon hours spent in providing the services. Generally, we estimate that our costs to issue a straight-forward application would be £3,000 plus VAT, together with any disbursements (including the court issue fee (currently £332) and counsel’s fees (if required)).