Options to Close Down a Company
There are various options available to close down a company.
As shown below, a company can be closed down via court winding-up, via members’ voluntary liquidation, via creditors’ voluntary liquidation or via striking off.
In this article, we shall focus on Strike Off.
Introduction:
Striking off is a process where the Registrar (i.e Companies Commission of Malaysia) exercises its discretionary power to strike off a company from the register.
The striking off application can be made by a director, member/shareholder or a liquidator of a company where there is reasonable cause to believe that:
⚙️Not carrying on business;
⚙️the company is being wound-up but no liquidator is acting;
⚙️insufficient assets to obtain a dissolution order from the Court
The requirements:
The following are the basic requirements for a company to apply for strike off:
🔔No asset & liabilities
🔔No outstanding charges
🔔No outstanding penalties & compounds
🔔No outstanding tax or other liabilities
🔔Company’s info is up to date at the Registrar of Company
🔔Not involved in legal proceeding
🔔Has not made any return of capital
🔔Not a guarantor corporation
Effect of Striking Off:
♦️Company ceases to exist
♦️Liability of officer of the company (i.e the Director) continues and may be enforced as is the company has not been dissolved
Objection of Striking Off:
Any objection from any person may be made at any time before the expiration of the publication of notification in the Companies Commission of Malaysia’s website.
If there is any objection received, the application to strike off will not be processed by the Registrar.
Reinstatement of Struck Off Company:
Application may be made by any person after the company has been struck off to resinstate the struck off company by way of Court Order.
Our other articles on the different modes of cessation of company:
Plan to Retire or close your company?
What is Members’ Voluntary Liquidation?
Why properly close down company?
What is court liquidation or court winding-up?
Various way to wind-up a company
Can I just abandon my company?
Not sure which mode of cessation of company suit your situation? Talk to us now.
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 an independent adviser to ensure the process is conducted in proper order and in accordance with the relevant laws and regulations. Our highly qualified team has worked throughout various cases in different industries and has extensive knowledge of business and its impact on stakeholders when a company faces financial distress.
For more information contact us.
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