Biztalk: Corporate Recovery Series #11 What are the effects of Striking Off?

You may have asked around and being told that there are two options to cease a solvent business in Malaysia. One of which is Striking Off and the other is via Voluntary Liquidation.

You have also weighted the costs for both the options and have finally decided to opt for Striking Off given the lower cost as compared to a Voluntary Liquidation.

But did you know why a Voluntary Liquidation cost more than a Striking Off and what are the effect of Striking Off?

Well, pursuant to the Companies Act 2016, when a company is struck off from the register (SSM), the company shall be dissolved, but the liabilities of every director or officer and member (shareholder) of the company continues and may be enforced as if the company had not been dissolved.

In short, if there is any claim from creditors and/or authorities, they can still claim against the director, officer and member of the company as if the company still exist (even though the company has been Struck Off).

Now that you know the effect, would Striking Off still be your preferred option? Again, it depends on the company circumstances and your objective.

Talk to us at +6010 231 9177 to make a better decision.

Follow us on: Facebook for updates

Follow us on: Telegram for Updates on Liquidation & Restructuring

Follow us on: Telegram for updates on Company Secretary