Liquidation - Creditors' Voluntary Winding Up
Creditors' Voluntary Winding Up in Singapore
A creditor's voluntary winding up is a process where a company ceases its operations and sells its assets to pay off its debts. It's initiated when the directors believe the company cannot continue due to financial difficulties.
Here's a breakdown of the process:
Initiation:
Declaration of Solvency: The directors cannot be confident of paying all debts within 12 months (unlike a members' voluntary winding up).
Creditors' Meeting: Creditors vote on a resolution to wind up the company and appoint a liquidator (someone to oversee the process). Creditors can also propose their preferred liquidator.
Liquidation Process:
Liquidator Takes Over: The appointed liquidator assumes control of the company, gathers assets, and sells them.
Debt Repayment: The liquidator uses the proceeds from selling assets to pay creditors according to a set order of priority (secured creditors are paid first, followed by unsecured creditors, and lastly shareholders).
Company Dissolution: After all debts and expenses are settled, the company is struck off the register and ceases to exist.
Resources:
For more information on Creditor's Voluntary Winding Up in Singapore, you can refer to these resources:
Singapore Accounting and Corporate Regulatory Authority (ACRA): https://www.acra.gov.sg/how-to-guides/closing-a-company/closing-a-local-company
Ministry of Law, Singapore - Insolvency Office: https://io.mlaw.gov.sg/
Liquidation of company in Singapore: https://www.bestar-asia.com/post/about-liquidation-or-winding-up
How Bestar can Help
Liquidation - Creditors' Voluntary Winding Up
Bestar offers services related to liquidation, including Creditors' Voluntary Winding Up. Here's how we can assist:
Guidance and Expertise: Our team has experience navigating the complexities of company liquidation and can guide you through the process.
Liquidator Appointment: We are able to act as the appointed liquidator, handling the sale of assets, debt repayment, and company dissolution.
Documentation and Procedures: We can help with the necessary paperwork and ensure all legal procedures are followed correctly.
Communication and Negotiation: We can facilitate communication with creditors and potentially negotiate on your behalf to secure favorable terms.
Contact Bestar: Contact us to confirm our specific expertise in Creditors' Voluntary Winding Up and inquire about our fees.
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