Procedure for liquidating a company

12-Mar-2020 06:02 by 8 Comments

Procedure for liquidating a company - aspx designer vb not updating

Winding up and striking off both result in a company ceasing to exist.However, they are very different processes and should not be confused with each other.

ACRA may approve the application if it has reasonable cause to believe that the company is not carrying on business and the company is able to satisfy the criteria for striking off.The notice of the appointment of the provisional liquidator and a copy of the statutory declaration must be advertised within 14 days of the appointment of the provisional liquidator in at least 4 local daily newspapers, one each published in the English, Malay, Chinese and Tamil languages respectively.At the EGM, the voluntary winding up of the company needs to be resolved by way of Special Resolution, that is by a majority of not less than 75% of the votes of the members entitled to vote.The EGM must be held within five weeks from the Directors’ Meeting executing the solvency declaration.Concurrently with calling for the meeting, the directors or partners are required to appoint an approved liquidator to be the provisional liquidator between the issuing of the Declaration of Solvency and the holding of the EGM.Furthermore, the company must ensure that all documents issued by or on behalf of the company containing the company’s name are amended to include the words “in liquidation” after its name and hand over all company books and records to the liquidator.

With the passing of the special resolution at the EGM, the member’s voluntary liquidation of the company is deemed to have commenced.The entire striking off process takes about 5-6 months.There are two paths to winding up a company in Singapore – voluntary winding up and compulsory winding up.A majority of directors of the company must make a written Declaration of Solvency at a meeting of the directors.Once this declaration has been filed with the Registrar, the directors must send to the members, a notice of an Extraordinary General Meeting (EGM) to be convened for the purpose of passing a Special Resolution to wind up the company, and an Ordinary Resolution appointing the liquidators (and approving their remuneration).The liquidator, or provisional liquidator will proceed to wind up the affairs of the company and file the necessary notifications required under the Companies Act.