{"id":5275,"date":"2021-09-30T21:04:36","date_gmt":"2021-09-30T13:04:36","guid":{"rendered":"https:\/\/malayacorporate.com\/?post_type=article&p=5275"},"modified":"2024-01-28T20:29:31","modified_gmt":"2024-01-28T12:29:31","slug":"strike-off-and-winding-up-a-company","status":"publish","type":"article","link":"https:\/\/malayacorporate.com\/my\/article\/strike-off-and-winding-up-a-company\/","title":{"rendered":"Strike off and Winding up a company"},"content":{"rendered":"
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Strike off and Winding up a company <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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By MALAYA CORPORATE<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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For companies that will be winding up, it requires number of procedures that have been set accordance with the Companies Act 2016<\/p>

There are two ways to close a company:<\/p>

  1. Striking off- Section 550<\/li>
  2. Winding up- Section 431<\/li><\/ol>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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    Striking Off<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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    Pursuant to Section 550, subject to Section 549, Registrar may remove a company from the register either on his own motion or on the application of a Director, Member or Liquidator of the company.<\/p>\n

    The company can be strike off if:<\/p>\n

      \n
    1. The company does not carry on business or does not operate;<\/li>\n
    2. The company has contravened the Companies Act 2016;<\/li>\n
    3. The company is being used for an unlawful purpose or any purpose prejudicial to or incompatible with peace, welfare, security, public interest, public order, good order or morality in Malaysia;<\/li>\n
    4. In any case where the company is being wound up and the Registrar has reasonable cause to believe that:\n
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      • No action is taken by the liquidator<\/li>\n
      • The affairs of the company are fully wound up and for a period of six months the liquidator has been in default in lodging any return required to be made by him; or<\/li>\n
      • The affairs of the company have been fully wound up under a winding up by the Court and there are no assets or the assets available are not sufficient to pay the cost of obtaining an order from the Court to dissolve the company.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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        Notice of intention to strike off company <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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        Notice will be given by the Registrar to the company or liquidator stating that if a reply for any reason shows otherwise is not received within 30 days of the notice given, notification to the public will be published in the manner determined by the Registrar to strike off the company name from the register.<\/p>

        The issued notice will be sent to the liquidator using its last known address, while for the notice that will be sent to the company will be sent to the registered company address or the company officer whose address is known by the registrar. As for if no address is known, the registrar can send the notice to each person who established the company according to the last address known.<\/p>

        The Registrar may remove the company name from the register after expiration of 30 days from the publication of the notice if:<\/p>

        • The Registrar receives confirmation that the company is no longer in business or does not operate<\/li>
        • The Registrar did not receive any response from the company on regard of the notice given<\/li>
        • The Registrar did not receive any objections to the notice and the notice that had been published<\/li>
        • The Registrar is not satisfied with the reason given by the company.<\/li><\/ul>

          The name of the company that has strike off will be published in the Gazette and the company shall be dissolved.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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          Cost that is incurred in the process of striking off the company<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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          No<\/p><\/td>

          Matter<\/p><\/td>

          Fee (RM)<\/p><\/td><\/tr>

          1<\/p><\/td>

          Application to strike off company from register under section 550 of the Companies Act 2016<\/p>

          \u00a0<\/p><\/td>

          \u00a0<\/p>

          100.00<\/p><\/td><\/tr>

          2<\/p><\/td>

          Lodgement of objection to strike off company from register under section 552<\/p>

          \u00a0<\/p><\/td>

          \u00a0<\/p>

          300.00<\/p><\/td><\/tr>

          3<\/p><\/td>

          Lodgement of notice of withdrawal of application to strike off company from register under section 553<\/p>

          \u00a0<\/p><\/td>

          \u00a0<\/p>

          500.00<\/p><\/td><\/tr>

          4<\/p><\/td>

          Application under section 556 of the Act:<\/p>

          a)\u00a0\u00a0\u00a0\u00a0\u00a0 for the Registrar to represent dissolved company<\/p>

          b)\u00a0\u00a0\u00a0\u00a0\u00a0 for the Registrar to execute or sign any relevant instrument or document relating to the representation of dissolved company<\/p>

          \u00a0<\/p><\/td>

          \u00a0<\/p>

          500.00<\/p>

          500.00 for each execution or signature of instrument or document<\/p><\/td><\/tr>

          5<\/p><\/td>

          Application for the Registrar to sell or dispose of property of dissolved company under section 558<\/p><\/td>

          30% from the proceed of sale or disposal of the property + cost incurred incidental to the sale or disposal of the property<\/p><\/td><\/tr><\/tbody><\/table>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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          Summary to strike off a company<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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          Notice will be issued by the Registrar to the company or liquidator\n\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
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          30 days period will be given for the company to respond to the Registrar<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
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          The name of the company will be published in the Gazette (conditional) and the company will have to dissolved<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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          Winding Off-Seksyen 431<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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          For companies to be wound up, there are two methods specified in the Companies Act 2016, which are<\/p>

          1. Voluntary winding up (S 431)<\/li>
          2. Winding up by order of the Court (S 464)<\/li><\/ol>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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            Voluntary winding up <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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            Voluntary winding up can be implemented if<\/p>

            1. A company has set a period for the company to be terminated (S 433)<\/li>
            2. The company through the voluntary winding up of member (S 445)<\/li>
            3. The company through the voluntary winding up of liquidator (S 449)<\/li><\/ol>

              \u00a0<\/u><\/strong><\/p>

              The process of voluntary winding up are:<\/p>

              • The company needs to make a declaration of solvency before the meeting related to the winding up of the company is held.<\/li>
              • A company meeting related to the wind up is held and the appointment of the liquidator or interim liquidator is made.<\/li>
              • The liquidator must submit a copy of the voluntary wind-up resolution to the Registrar within 7 days before the resolution being circulated<\/li>
              • The company should publish a wind-up resolution notice on one newspaper widely distributed in Malaysia using Bahasa Malaysia and one newspaper widely distributed in Malaysia using English within 10 days after the ruling is circulated.<\/li><\/ul>

                There are several eligible conditions outlined in Section 433 of the Companies Act 2016 to guide the members to appoint a liquidator to manage the winding up of the company. There are few restrictions on appointing a liquidator such as the liquidator must obtain permission from the Court to act as a liquidator, not bankrupt and not convicted of fraud and dishonesty<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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                Winding up made by order of the Court <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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                The winding up of the Company on the order of the Court can be implemented if the Court receives a petition from any party specified in Section 464 of the Companies Act 2016 such as creditors, liquidators, companies and others. Apart from that, the Court can also wind up the company through a special resolution issued by the company, the Court is of the opinion that it is fair and equitable for the company to be wound up and other situations mentioned in Section 465 of the Companies Act 2016<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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