Firm’s directors seek to overturn ‘strike off’ notice
DIRECTORS of two council-owned companies are trying to overturn a “strike off” notice which could see the firms dissolved in months.
The Stockton Hotels Company Ltd, which is responsible for the finances of the publicly-owned Hampton by Hilton hotel in Stockton, faces being struck off the register at Companies House and dissolved within two months.
So does the company which owns it, Stockton Borough Holding Company Ltd, which is wholly owned by Stockton Council.
The two companies have been given the notice because their accounts are overdue.
They have not submitted their accounts for the financial year ending March 31, 2022, more than two months after the deadline of March 31 this year.
Stockton Council chiefs have put delays in filing the hotel’s accounts and auditing council accounts down to “technical accounting issues outside of our control”.
They say these affect many other councils nationally.
The notices to the two companies state: “The Registrar of Companies gives notice that, unless cause is shown to the contrary, the company will be struck off the register and dissolved not less than two months from the date shown above (June 6, 2023).”
A spokesperson for Stockton Council responded: “Unfortunately the delays in filing the hotel accounts is beyond our control and down to national technical accounting issues affecting other local authorities across the country – including all local authorities in the Teesside Pension Fund.
“Company directors are looking to get the situation resolved as soon as possible and are requesting the ‘strike off’ notice be suspended with immediate effect.”
Garry Cummings, the council’s deputy chief executive and director of finance, development and regeneration, addressed the strike off notice to the two companies in a note headed “Stockton Hampton by Hilton Hotel” to councillors.
He said: “In my role as shareholder representative I have discussed this matter with the company directors who have taken immediate action to resolve this issue as soon as possible.
“The directors’ understanding is that the reason for the notice relates to the delay in filing the accounts for the year ending March 31, 2022.
“As background, the hotel companies do not currently require a separate audit of their accounts as they are incorporated into the council’s group accounts.
“The filing of the accounts for the two companies is therefore dependent upon completion of the audit of the council’s accounts.
“The delays to audit for local authority accounts are due to a number of technical accounting issues outside of our control.
“This is no reflection of the financial management of the council or the companies – and all other areas of the council’s group accounts have been audited satisfactorily.
“We had been expecting the audit issues to be resolved imminently which would have allowed the audit to be completed and also for the hotel company accounts to be filed, however this appears likely to still take some time.”
There will be a separate audit of the two companies in future to prevent the situation happening again.