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DISSOLUTION OF A TENANT COMPANY
A company that is struck off the Register of Companies and
dissolved no longer has any legal existence. Its property
vests in the Crown (or the Duchy of Lancaster or the Duke
of Cornwall as the case may be) as bona vacantia.
Where a tenant company is dissolved, the benefit of its lease
will therefore vest in the Crown, which can then exercise
all beneficial interests in respect of it. As the Crown becomes
the landlord's direct tenant, it is subject to the landlord's
usual remedies in respect of any breaches of covenant.
However, the Crown has the option of disclaiming the lease
rather than taking on onerous obligations. In that event,
the Crown will have terminated its rights, interests and liabilities
in respect of the disclaimed property as from the date of
disclaimer.
A landlord may be able to object to the tenant company's
striking off and to apply to have the company restored to
the Register, but this will depend upon the circumstances
and is often a time-consuming process.
For further information or advice please contact propertylitigation@charlesrussell.co.uk
These notes represent only an outline summary
of relevant principles and detailed advice should always be
sought in particular cases.
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