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
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