How company status works

Every company on the Companies House register has a status that reflects its current legal standing. The status tells you whether the company is operating normally, winding down, or no longer in existence. Senserity monitors status changes as one of its most important risk signals, because a change in status can directly affect a supplier's ability to trade, fulfil contracts, and pay its debts.

Active

Most companies on your watchlist will show as Active. This means the company is registered, in good standing with Companies House, and legally able to trade. An Active status does not mean the company is healthy, profitable, or well-run. It simply means it has not entered any formal process that restricts its operations.

Proposal to Strike Off

This status appears when Companies House has published a notice in the London Gazette proposing to remove the company from the register. There are two common reasons. The company may have applied voluntarily to be struck off (because it has stopped trading), or Companies House may have initiated the process because the company has failed to file its accounts or confirmation statement.

A Proposal to Strike Off is a warning, not a final action. The company has two months to respond. If it resumes filing or objects to the strike-off, the process is halted. If it does not respond, the company is dissolved.

Senserity treats this as a significant finding. A voluntary application suggests the company is winding down. A compulsory proposal suggests it has stopped maintaining its legal obligations. Either way, it is not business as usual.

Active - Proposal to Strike Off

Some companies show a combined status where they are technically still Active but a strike-off proposal has been published. This is a transitional state. The company can still trade, but the clock is running. If the underlying issue is not resolved, the company will be dissolved.

In Administration

Administration is a formal insolvency process where an independent administrator takes control of the company. The aim is usually to rescue the company as a going concern, or failing that, to achieve a better outcome for creditors than immediate liquidation would.

A company in administration is not dissolved and may continue to trade under the administrator's direction. However, its contracts, supplier relationships, and payment obligations are all subject to the administrator's decisions. Senserity flags administration as a Critical-severity finding that can trigger a Red Flag.

In Liquidation

Liquidation means the company is being wound up. Its assets are being sold to pay creditors, and the company will be dissolved once the process is complete. There are two types:

Creditors' voluntary liquidation (CVL). The company's directors and shareholders have agreed that the company cannot pay its debts and should be wound up. A liquidator is appointed to manage the process.

Compulsory liquidation. A court has ordered the company to be wound up, usually following a winding-up petition from an unpaid creditor or HMRC.

In either case, the company is not expected to continue trading in any meaningful way. Senserity flags liquidation as a Critical-severity finding and a potential Red Flag trigger.

Dissolved

A dissolved company no longer exists as a legal entity. It has been removed from the register, its bank accounts are frozen, and its assets have passed to the Crown (unless claimed). A dissolved company cannot trade, enter into contracts, or be sued.

If a company on your watchlist is dissolved, that relationship is effectively over. Senserity retains the historical profile so you can see what happened, but no further enrichment or scoring takes place.

It is possible for a dissolved company to be restored to the register through a court order or administrative process, but this is uncommon.

Receivership

Receivership is an older insolvency mechanism where a secured creditor appoints a receiver to take control of specific company assets. It is less common than it once was, having been largely replaced by administration for most purposes. Senserity treats it as a serious negative signal, similar to administration.

Company Voluntary Arrangement (CVA)

A CVA is a formal agreement between the company and its creditors to repay debts over a fixed period, often at a reduced rate. The company continues to trade while the arrangement is in place. A CVA is a sign of financial distress but also indicates that the company is attempting to manage its debts rather than entering liquidation.

Senserity flags CVAs as a High-severity finding. The company may be viable, but it is under financial pressure and its ability to meet new obligations is uncertain.

How Senserity responds to status changes

Status changes are among the highest-priority events Senserity monitors. When a company's status changes, several things happen:

An alert is generated. Status changes trigger alerts immediately, so they appear in your notification feed as soon as the new data is processed. See How alerts are generated for more on the alert system.

The risk score is recalculated. A company that moves from Active to In Administration will see a significant increase in its risk score. Critical-severity insolvency tests will fail, and Red Flag conditions may be triggered.

The risk grade may change. A status change to any insolvency process will almost certainly push the company into a D or E grade, regardless of how it scored before.

Senserity picks up status changes from two sources: the daily Companies House bulk data update, and gazette notices that often precede the formal status change on the register. This means you may see an alert about a "Proposal to Strike Off" gazette notice before the company's status officially changes.

Last updated 29 April 2026.