Liquidation

1. Who can be appointed as liquidator?

1. Who can be appointed as liquidator?

Official Receiver (Director General of Insolvency (DGI) in capacity as Official Receiver); or Private liquidator (an individual person whom is licensed to be a liquidator).
2. What are the duties of a liquidator ?

2. What are the duties of a liquidator ?

To investigate into the affairs and assets of the company To investigate the conduct of its directors and other related persons To investigate claims made by of creditors and third parties; To collect and realize the company's assets at the best...
3. Who is an unsecured creditor ?

3. Who is an unsecured creditor ?

Any person who has lodged the proof of debt with the liquidator.
4. How does the unsecured creditors get paid ?

4. How does the unsecured creditors get paid ?

Initially, all priority matters and persons as listed under section 292 of the Companies Act 1965 will be paid. The remaining balance will then be divisible amongst all pari-passu (equally).Priority matter and persons : cost and expenses of the...
5. Can the property of the Society be vested in a new registered society ?

5. Can the property of the Society be vested in a new registered society ?

The DGI can apply to the Court for the vesting of all the assets and liabilities of the society to the new registered society upon request be made by the new society whose constitution is similar to the old society.
6. What are the duties of ex-directors of a company ?

6. What are the duties of ex-directors of a company ?

Ex-directors of the company must co-operate with the liquidator to provide all of the company's information such as the company's assets and creditors. All information provided must be supported by relevant documents.Ex-directors are required to...
7. What is compulsory winding up ?

7. What is compulsory winding up ?

Normally company is wound up because of unable to pay its debts. The company is wound up under an order of the court on the petition of: the company; any creditor; contributory; the liquidator; Minister of Domestic Trade and Consumer Affairs; Minister of...
8. What is liquidation or companies winding up ?

8. What is liquidation or companies winding up ?

It is a process whereby the assets of a company are collected and realized in order to pay debts to the creditors. There are two types of winding up namely, compulsory and voluntary winding up.
9. What is proof of debt?

9. What is proof of debt?

It is a document that states the amount of debts owing by a company to a person ( secured and unsecured creditor) and the statement must be supported by relevant documents. For example, where there is an agreement, it would be advisable to attach it.
10. What is the effect of liquidation on secured creditor of the company?

10. What is the effect of liquidation on secured creditor of the company?

Secured creditor retains the ability to enforce securities under the National Land Code where the company is in default. Liquidation is usually treated as default allowing secured creditor to uplift and sell company assets over which they have...
11. What is the effect of winding up on a company ?

11. What is the effect of winding up on a company ?

Cessation of company's business Termination of contracts of employment Avoidance of disposition of company's assets Avoidance of transfer of shares Avoidance of uncompleted execution Prohibition on execution action against of company unless obtain...
12. What is the effect of winding up towards contributory of the company ?

12. What is the effect of winding up towards contributory of the company ?

The contributory is not personally liable towards the company's debts. However, the liquidator has power to direct the contributory to pay any unpaid shares.
13. What is the effect of winding up towards directors of the company ?

13. What is the effect of winding up towards directors of the company ?

All the powers of the directors shall cease upon the winding up of a company. The liquidator will take over the administration of the affairs of company's winding up.
14. What is voluntary winding up?

14. What is voluntary winding up?

Voluntary winding up is whereby a company is wound up: when certain period of time was fixed for the duration of the company by expiration of Memorandum of Association (MOA) or Article of Association (AOA); when the MOA or AOA provide that the...
15. What will happen to property of the trade union that has been cancelled by Director General of Trade Unions?

15. What will happen to property of the trade union that has been cancelled by Director General of Trade Unions?

The property shall vest on the DGI who will realize the assets and pay the trade union's debts due to the creditors who have filed their claim.
16. What will happen to the surplus assets of the society after DGI has paid all debts and liabilities of the society ?

16. What will happen to the surplus assets of the society after DGI has paid all debts and liabilities of the society ?

The surplus assets shall be paid to the consolidated fund if the registration was refused or cancelled by the Minister. For registration of society that was cancelled by the Registrar of Societies, the surplus assets will be paid to the members of...
17. What will happen to the surplus assets of the trade unions

17. What will happen to the surplus assets of the trade unions

The surplus assets will be paid to the members of the trade union in accordance: to the rules of the trade union (if any); equally amongst the members of the trade union; or if there is difficulty in ascertaining the persons entitled to such...
18. Where a society’s registration is cancelled by the Minister or Registrar of Societies, what is the consequences on the assets belonging to the society ?

18. Where a society’s registration is cancelled by the Minister or Registrar of Societies, what is the consequences on the assets belonging to the society ?

The assets of the society will vest on the DGI who will realize the assets and pay the society's debts due to the creditors who have filed their claim.