Under Section 308 of the Companies Act, the Registrar has the power to remove a company's name from the register if there are reasonable grounds for believing that the company has ceased trading or otherwise ceased to carry on business. The company will then be deemed to have been dissolved upon publication of a notice of deregistration in the Gazette.
Under normal circumstances, the Registrar will not exercise the power stipulated in Article 308, but will let the company take the initiative to complete the deregistration. Entrepreneurs who do not intend to use the company for business are strongly advised not to abandon the company as this may result in hefty fines.
*This decision can be challenged by anyone who wishes the company to be reinstated and they can apply to the court to have the company's name reinstated on the register under the same terms. But they must prove to the court that the company was actually still operating when it was deregistered.
Philippines
