March 2024
Rogue Companies House Filings Spark Concern Amongst Britain’s Major Banks
It has been discovered that hundreds of ‘rogue’ filings concerning the discharge of financial liabilities have been lodged at the UK’s primary company register, Companies House.
Last week, UK Finance issued an urgent notice to banks, and alerted both the Department for Business and Trade and Companies House to the problem.
It remains unclear as to the exact circumstances surrounding this issue, however Industry Executives have expressed concern over potential fraud or hacking of the Companies House register.
UK Finance stated on Friday “Companies House have emphasised that an incorrect entry in the register – saying a charge has been satisfied – does not invalidate or cancel that charge.” They added “It remains valid and enforceable.”
From today, Monday 4 March 2024, new measures under the Economic Crime and Corporate Transparency Act 2023 (ECCT Act) came into force. These new and enhanced powers give Companies House the ability to improve the quality and reliability of its data and tackle misuse of the companies register. These changes, which are complemented by new criminal offences and civil penalties, include the following:
- greater powers to query information and request supporting evidence;
- stronger checks on company names;
- new rules for registered office addresses (all companies must have an appropriate address at all times – they 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 subscribers to confirm they’re forming a company for a lawful purpose when they incorporate, and for a company to confirm its intended future activities will be lawful on its confirmation statement;
- greater powers to tackle and remove factually inaccurate information; and
- the ability to share data with other government departments and law enforcement agencies.
These powers have been described by Louise Smith, CEO of Companies House, as “the most significant change for Companies House in our 180-year history”.
Kevin Hollinrake, Business Minister, commented:
“The new reforms, which come into effect today, provide further protection to the public from companies fraudulently using their address and will begin to remove the smoke and mirrors around companies hiding behind false information. This will enhance the UK’s reputation as a great and safe place to do business.”
As further measures are introduced, Companies House will issue further guidance.
At Cook Corporate we recommend instructing solicitors or accountants to handle filings at Companies House who stay up to date with new measures and legislation, in order to avoid errors and difficulties in having to remove any erroneous or inaccurate filings.
If you require any assistance with this, please do not hesitate to get in touch.