Written question asked by Robin Walker (Conservative) on Monday, 19 July 2010, in the House of Commons. It was due for an answer on Wednesday, 21 July 2010. It was answered by Lord Garnier (Conservative) on Tuesday, 7 September 2010 on behalf of the Solicitor General.

Bank Services: Company Liquidations

Question: To ask the Chancellor of the Exchequer what steps his Department is taking to access unclaimed funds in bank accounts of wound-up companies; and what discussions he has had with banks in respect of any outstanding charges to be levied on such accounts before transfer to the Exchequer.

Answer: I have been asked to reply.When a company registered under the Companies Acts is dissolved, any property and rights in England and Wales held by the company at the date of its dissolution (including any money in bank accounts) pass to the Crown as ““bona vacantia””. The Treasury Solicitor is the Crown's nominee for dealing with bona vacantia in England (except in the Duchies of Cornwall and Lancaster), Wales and Northern Ireland. In Scotland, bona vacantia falls to be dealt with by the Queen and Lord Treasurer's Remembrancer. Income from bona vacantia is paid into the Consolidated Fund. Banks and other institutions holding such funds are entitled to make lawful deductions in respect of their charges before remitting the balance as bona vacantia.Where a company is placed in liquidation prior to being dissolved, the liquidator will apply any assets of the company (including any money in bank accounts) to pay its debts. In these circumstances by the time the company is dissolved there will ordinarily be no assets to pass to the Crown as bona vacantia.In the financial year 2009-10 the Bona Vacantia Division of the Treasury Solicitor's Department received £46,873,362.65 from banks, building societies and other financial institutions and from solicitors' client accounts in respect of dissolved companies.

Secondary information