The two companies failed to maintain a registered UK address (which is required by the Companies Act 2006), having changed registered addresses multiple times since they were incorporated and with one registered to a residential address where there are over 41,000 companies registered (this address is now under investigation by the Insolvency Service).

Also, after analysis of the financial transactions in these companies, the Insolvency Service said the companies’ accounts were ‘were unrealistic to a degree that investigators believed them to be fabricated and deliberately false’ and ‘Our investigations concluded that both companies could be used as vehicles for fraud in the future and customers may suffer further financial losses, which is why the secretary of state applied to have them wound up in the public interest.’

Noting this in in light of the new The Economic Crime and Corporate Transparency Act 2023 (ECCTA) which includes:-

• New rules for registered office addresses which will mean all companies must have an appropriate address at all times.  Companies will not be able to use a PO Box as their registered office address;

• A requirement for all companies to supply a registered email address;

• A requirement for all companies to confirm they’re forming the company for a lawful purpose when they incorporate.  Every year, the company will need to confirm that its future activities will be lawful on their confirmation statement;

As well as the requirement on Director’s (and their accountants advising them and assisting in preparing and filing accounts) of:

S393 Accounts to give true and fair view

(1)The directors of a company must not approve accounts for the purposes of this Chapter unless they are satisfied that they give a true and fair view of the assets, liabilities, financial position and profit or loss…

It also being a criminal offence under the Companies Act 2006 not to maintain “proper accounting records”.