What’s in a name?: Companies House ordered to pay out over clerical error


What’s in a name?: Companies House ordered to pay out over clerical error

09 Feb 2015

The importance of accurate registration was highlighted very recently when it emerged that an error by employees at Companies House has meant the Government are now facing a £9 million legal bill  following the demise of a 124-year old company. Nicholas Lowe, of Kuits’s Banking and Real Estate Finance team, explains how this relatively straightforward procedure by Companies House quickly turned in to a nightmare for those involved.

In 2009, Companies House had erroneously recorded that an engineering firm ‘Taylor and Sons Ltd’ had been wound up. It was, in fact, ‘Taylor and Son Ltd’, a completely unconnected company that had gone under. Although Companies House quickly amended their error, the rumour that the company were suffering difficulties spread via the internet and word of mouth. Within just three weeks, all of Taylor and Sons’ 3000 suppliers terminated orders and withdrew credit facilities. The company went in to administration, and in 2014 the company was dissolved.

The battle for compensation looks to finally have been resolved in the High Court, who ruled in favour of Taylor and Sons stating that the mistake by Companies House “was easy to avoid”.

Whilst the mistake from Companies House was an extremely rare one, the case has demonstrated how serious the consequences of errors in registration by any party can be.

If you need any assistance around this topic, please contact us or call Nicholas Lowe on 0161 832 3434 to discuss your options.

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