It has been suggested to me that converting a company from Limited to Unlimited is an alternative way of escaping the bona vacantia rules where non-distributable reserves/share capital exceed £4000, and that this, followed by ESC C16 dissolution, may be a cheaper or more convenient method than liquidation or capital reduction. I can see how it might be cheaper than the liquidation route. Not so sure about the capital reduction. Anyway, do you have any views on whether this works and/or is a sensible alternative?
Response from Nichola:
A capital reduction is very simple to execute following Companies Act 2006, and so on cost grounds it would make more sense to use that. Changing a company to an unlimited one will take a big rewrite of the Mem and Arts and then you have to navigate through the new Companies Act forms too which is an added complication for the non specialist in this area. If you want peace of mind and the affairs of the company are complex, or have been complex then you should appoint a liquidator.
