The UK's 100 largest companies are spending over £30m a year on the administration costs of dormant subsidiaries, according to PricewaterhouseCoopers.  The FTSE 100 companies maintain 15,000 subsidiaries, almost half of which are dormant.  Although there is no question of any sinister motives, Richard Setchim, PwC's head of Corporate Simplification and Reconstruction, has questioned the "unnecessary clutter" caused by groups with large networks of subsidiaries.

In our next edition, we will consider the procedure for striking-off dormant companies.

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