Corporate Recovery & Restructuring

What is Court Liquidation?

A court liquidation is a formal winding up of a company where usually due to unpaid debts. The petition to wind up a company can be presented by creditors, company, members or other interested parties. A liquidator will then be appointed by the court. The main objective is to realise the company’s assets and disburse amount recovered to creditors in accordance with established priorities.

Causes of Court Liquidation

There are a wide range of circumstances that could result in a company being wound-up via the court liquidation. The majority of court liquidations occur when a company becomes insolvent due to an inability to pay its debts. In some cases, the directors may have conducted the affairs of the company in their own interests, instead of in the best interest of the company.

Effects of Court Liquidation

Any disposition of the company’s assets and transfer of shares is prohibited once the company has been placed in liquidation. Business operations will mostly have been ceased and will be placed in the hand of licensed liquidator. When the event of default occurred, secured creditors can exercise their powers to dispose of the company’s assets which have been charged to them as security in order to pay off the debts in accordance with the law.

Roles of the Liquidator

A petitioner can opt to appoint a private liquidator or to appoint the Official Receiver to administer the liquidation process of the company. A private liquidator will be able to effeciently investigate into the affairs of the wound-up company. The liquidator will realise the company’s assets and distribution to creditors will be made accordingly based on the relevant Act.

How can Bizboard help?

As a professional in Corporate Recovery and Restructuring service, Bizboard can assist in the pre-liquidation and restructuring consultation. We truly understand the impact of insolvency and liquidation to all parties involved. Rest assured and let our team of professionals to assist you in corporate recovery and restructuring matters

Interested in Our Corporate Recovery & Restructuring Services?

Are you contemplating in taking actions to recover your debts? Or are you facing any issues in recovering your debts (or having difficulties in servicing your debt obligations), or is your company at risk of insolvency trading? Be in touch with us for a free and no obligation discussion on how we can assist you on recovery and restructuring matters.

Court Winding-Up

Court Winding-Up (Compulsory Winding-Up) is common when a company is not able to pay its debts.

It usually starts with a Notice of Demand served on the company by the creditor demanding the company to settle its outstanding debt

Application will be made to court (winding-up petition) if the company fails to settle the debts as per Notice of Demand.

If winding-up order is granted, a Liquidator will be appointed to administer the winding-up of the company.

The following are, amongst others, the grounds for Court Winding Up:

[1] Disputes, breakdown of trust amongst shareholders which cannot be resolved amicably

[2] Directors committing fraud or carrying out the business in the manner unfair, unjust and/or not in accordance to members’ interest

[3] Company is being used for unlawful business activities

[4] Company not able to continue business due to its license being revoked by the relevant authorities

How can Bizboard help?

As a team of professional accountants, Bizboard work and liaise with various professionals such as legal advisors, financial institutions, government authorities and other related professionals to achieve the best possible solution and highest recovery for all stakeholders throughout the insolvency or restructuring process.

Bizboard act as independent adviser to ensure the process is conducted in proper order and in accordance to the relevant laws and regulations. Our highly qualified team have worked throughout various cases in different industries and have an extensive knowledge of business and the impact on stakeholders when a company faces financial distress.

Talk to us to know more.

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