Liquidation

It is a process whereby the assets of a company are collected and realised by the liquidator in order to pay its debts to the creditors. There are two types of winding-up namely, compulsory and voluntary winding-up.

a) Official Receiver (Director General of Insolvency (‘DGI’) in his capacity as the Official Receiver); orb) Private liquidator (an individual who is licensed to be a liquidator).

a) To investigate the affairs and assets of a wound-up company;b) To investigate the conduct of company directors and other related persons;c) To investigate claims made by creditors and third parties; andd) To collect and realize the company's...

a) Company shall cease its business.b) Contracts of employment shall be terminated.c) Disposition of company's assets and transfer of shares are prohibited.d) No action or proceeding shall be proceeded with or commenced against a wound-up company...

All the powers of the directors shall cease and the affairs of the company will be administered by the liquidator.

Company directors must co-operate with the liquidator and provide all documents and information about the company such as its assets and liabilities. Directors are also required to complete and submit a statement of affairs of the company to the...

Contributories are not personally liable for the debts of the company. However, the liquidator has the power to direct contributories to pay any unpaid shares.

It is a document that states the amount of debts owing by a company to a creditor. The statement must be supported by relevant documents such as agreement, court order etc.

An unsecured creditor is a creditor who has no security (charge) of the property of the company.

Preferential unsecured creditors such as the company’s employees and other preferential claims will be paid in priority in accordance with the law. Any balance from the company’s asset will then be distributed equally among other unsecured creditors.

a) In the event of default, secured creditors can exercise their powers to sell the company’s assets which have been charged to them as security in order to satisfy the debts in accordance with the law. b) Should there be any shortfall therefrom, secured...

The winding-up order needs to be set aside, terminated or stayed before a company can resume to business.

It is an order by the court for the liquidator to be released and the company be dissolved after the liquidator has realised all the property of the company, distributed a final dividend and made a final return to the contributories (if any).

The assets of the society shall vest in the DGI and will be subsequently realised for the purpose of satisfying the debts of the society

The DGI may apply to the court for the vesting of all the assets and liabilities of the society to the new registered society upon request by the new society whose constitution is similar to the old society.

The property of the trade union shall vest in the DGI and will be subsequently realised for the purpose of satisfying the debts of the trade union.

The surplus assets of a trade union will be distributed: a) in accordance with the rules of the trade union (if any),b) equally amongst its members; orc) in accordance with the court order based on the scheme submitted by the DGI if the persons...