How to apply for a discretionary grant where the dissolved company can be restored. (Company has been dissolved for less than six years)
Applies to England and Wales
Cash and other assets of a dissolved company automatically pass to the Crown as Bona Vacantia by law under Section 1012 of the Companies Act 2006. The Bona Vacantia Division (BVD) of the Government Legal Department is responsible for this function.
The Discretionary Grant application enables sums of money to be recovered without making an application to restore the company to the Companies Register. A maximum limit of £3000 can be recovered and only one grant payment will be made in respect of each dissolved company.
All grants are discretionary. No-one has a right to a grant.
Who can apply
You must be one of the following in order to be eligible for a Discretionary Grant:
- Former shareholders provided all shareholders of the dissolved company apply and there are no existing creditors of the company.
- Former liquidators
- Former administrators
- Former company voluntary arrangement (CVA) supervisors
- A grant will only be made if the applicant undertakes not to restore the company in the future. If you are intending to restore the company, please click here: https://www.gov.uk/guidance/apply-for-a-repayment-after-a-company-has-been-restored-to-the-register-cb4
If you are acting on behalf of a deceased shareholder, you will need to provide a sealed copy of the Grant of Probate or Letters of Administration.
A Discretionary Grant can be issued to another charity/non-profit organisation which has similar objectives. This is known as a recipient charity. A written confirmation from the Charity Commission for England and Wales will be required confirming that there are no objections to a Grant being made to the recipient charity.
Dissolved Community Interest Companies
A Discretionary Grant can be issued to an asset locked body named in the constitution of the company. BVD will conduct the necessary checks on the asset locked body to establish whether it is legally able to receive the grant. A written confirmation from the Office of the Regulator for Community Interest Companies will be required. If an asset locked body is not named in the dissolved company’s constitution, BVD will contact the regulatory body upon receipt of the application. The grant cannot, under any circumstances, be issued to an individual.
When to apply
A Discretionary Grant can only be processed once BVD have received the unclaimed funds of the dissolved company from the asset holder. If you are unsure of your closing balance or if this has been sent to BVD, you should contact your bank or respective institution acting as the asset holder.
What it will cost
An administrative fee of £300 will be deducted from the balance that constitutes the grant. If BVD hold a balance of £300 or less, a grant cannot be made. Where the remaining balance exceeds £750 following the deduction of this administrative fee, a 5% reservation fee will be applied. The reservation fee is retained in order to protect the Crown in the future from any potential creditors of the company. Example:
Applying for a balance of £2300:
Administrative fee deduction: £2300 - £300 = £2000.
Figure exceeds £750, therefore the 5% reservation fee is applied:
£2000 – (5/100 x £2000 = £100)
Discretionary Grant to be paid: £1,900.
How to apply
You will need to submit the following documents as part of your application:
- A completed DG2 application form and undertaking(s)
- A certified copy of ID proving your name (e.g. passport)
- A certified copy of ID proving your residential address (e.g. utilities bill or bank statement issued in the last 3 months)
If there were multiple shareholders in the company at the time of dissolution, the application should include the certified copies of ID documents along with a signed undertaking for each shareholder. A list of valid ID documents accepted by BVD is available here: https://www.gov.uk/government/publications/proof-of-identity-checklist
Prior to submitting your proofs of ID, they will need to be certified as being true copies. If you reside in the UK, this can be done either by:
- Document Certification Service provided by the Post Office
- A practising Solicitor
If you are residing outside of the UK:
- A Notary Public registered in your country of residence
- A British Embassy, Consulate or High Commission
- Courts or Justice Ministry services in your country of residence
DG2 Application & Undertaking Forms
The DG2 application form comprises of two parts, the application and an undertaking. As an applicant, you will be required to complete both parts. If there were multiple shareholders within the dissolved company, each will have to complete the Undertaking part of the application ONLY.
Applications should be submitted to BVD electronically. Please send all applications together with the supporting proofs of identity documents by email to the following address: firstname.lastname@example.org
Due to the current Government guidance concerning coronavirus (COVID-19) we are accepting scanned Identification Documents which do not have to be verified by the Post Office, practising Solicitor or a Notary Public as stated in our guidelines and forms.
Contact and enquiries
Bona Vacantia - Cash Balance
Please use this email address for all enquiries relating to the cash assets of dissolved companies.
Alternatively select option 1 when calling the Cash Balance Team