I got into a JDA with a developer about 10 years ago. Everything was fine until now where I want to buy off his share. But his company is listed as status 'Strike Off'. All the agreements I have are with the Developer company and NOT the individual. Does the JDA automatically stand canceled since the company I signed the agreement with is 'Strike off'? Please advise
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Strike Off means removing the name of the Company from the Register of Companies maintained by the Registrar of Companies. It is more like a Closure of the Company and the Company will not be in existence after being Struck Off and cannot perform any operation thereafter.
JV stands cancelled
Dear client
A company being listed as "Strike Off" by the Registrar of Companies typically indicates that the company has failed to comply with the legal requirements under the relevant jurisdiction and may have been dissolved.
Whether a Joint Development Agreement (JDA) between you and the developer's company automatically stands canceled or not will depend on the specific terms and conditions of the JDA and the laws of the jurisdiction where the JDA was executed.
It is recommended that you seek legal advice from a qualified attorney to review the JDA and advise you on your rights and obligations in light of the company's "Strike Off" status. The attorney can also help you navigate any potential legal issues that may arise in connection with the purchase of the developer's share in the JDA.
From what you say, it appears that the company may have been delisted from stock exchanges, but it may very well be in existence as on date. That fact needs to be verified first. You say the JDA was signed 10 years ago. For how long was it originally valid? Delisting does not automatically cancel the JDA.
A Company goes for strike off when the management no longer wishes to carry on the business further. Strike off simply means removing of the name of the company from the Registrar of Company. Section 248 of The Companies Act 2013 states about the provisions of Strike off of company.
company listed as status ;strike off' means:
The assets of the company become the property of the State on dissolution of the company; Following strike-off of a company, it ceases to exist as a legal entity as and from the date on which notice of its strike-off is published in the CRO Gazette.
Once a company strike off form has been filed, the company can no longer trade, sell company assets or become involved in any other business activities.
Dear Sir,
Yes once the name of company was struck off from the records of register maintained by the ministry of company affairs, there is no validity to the JDA.
You can send him a cancellation notice for the same. Generally it has to be mutually cancelled
