Malaysia Hotline: +603- 2141 8908
To close
down a Malaysia Company, shareholders or directors can file the application for
cancellation of the company to Companies Commission of Malaysia (CCM). When a
company is no longer in the operating state, according to the Companies Act,
the company owner has the right to close the Company.
There
are two ways to close down a Malaysia Company:
1) Strike off
2) Winding up
-
Voluntary winding up
-
Winding up by court
Strike off of Malaysia Company
Striking-off
is a process in which the Registrar’s exercises his discretionary power to strike
the name of a defunct company off the register if the Registrar has reasonable
cause to believe that:
-
the company is not in operation or is
not carrying on business
-
the company has been wound up but no
liquidator is acting
-
the liquidator’s failed to lodge any
return and the Liquidator’s Account of the wound up within the stipulated
period
-
the company has no asset or
insufficient funds to pay the costs of obtaining an order from the Court to
dissolve the company
The
Striking off application could be rejected by the SSM due to the following
reasons:
a.The Company has large share base (High
level of paid-up capital).
b.The Company has large amount of retained
profits.
c.The Company was very active in business not
long ago.
d.The Company has recently disposed of a
property.
e.The Company has unpaid debts / creditors /
liability.
f.The Company is in the legal lawsuit.
As such,
SSM will request the Company to go for voluntarily winding up / liquidation
process.
Winding up of companies
Winding
up is a process in which the existence of a company is brought to an end, where
assets of a company are collected and realised. The proceeds collected are used
to discharge the company’s debts and liabilities and the remaining balance (if
any) will be is distributed among the contributors according to their
entitlement.
(1) Voluntary winding up
Voluntary
winding is divided into 2 categories:
(a) Members’ voluntary winding up is the
liquidation of a solvent company where the directors have formed an opinion
that the company will be able to pay its debts in full within the period of 12
months after the commencement of winding up as stated under section 257 of the CA 1965; and
(b) Creditors’ voluntary winding up is a
liquidation of an insolvent company where the directors make a declaration
stating that the company cannot, by reason of its debts and liabilities,
continue its business. A meeting between the company and its creditors must be
summoned within 1 month from the date of the declaration.
(2) Company winding up by Court
Winding
up by Court is also known as a compulsory winding up. It begins with the
presentation of a petition in Court. The petitioners include creditors,
liquidator, the Registrar of companies or the Official Receiver under section
217(1) of Companies Act 1965.
Contact
us
If
you have further queries, please contact Tannet
24
hours Malaysia hotline：603-21418908;
24
hours Hong Kong hotline：852-27837818;
24
hours Hong Kong hotline：86-755-
36990589;
Email:
mytannet@gmail.com