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

Corporate Recovery Services in Malaysia

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.

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 make a better decision.

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