A company can be wound up in Singapore in two ways:
Voluntary winding up. This is when the company's shareholders or creditors decide to wind up the company.
Compulsory winding up. This is when the court orders the winding up of the company.
The winding up process is complex and there are a number of steps that need to be taken. The following are the key steps involved in winding up a company in Singapore:
Appointment of a liquidator. A liquidator is a professional who is appointed to wind up the company's affairs. The liquidator is responsible for collecting the company's assets, paying its debts, and distributing any remaining assets to the company's shareholders.
Declaration of solvency. If the company is solvent, the shareholders can pass a resolution to wind up the company voluntarily. The resolution must be passed by a majority of the shareholders who vote.
Declaration of insolvency. If the company is insolvent, the creditors can petition the court to wind up the company compulsorily. The court will order the winding up of the company if it is satisfied that the company is insolvent and that there is no reasonable prospect of the company being able to pay its debts.
Publication of notice of winding up. Once a liquidator has been appointed, they must publish a notice of winding up in the Singapore Gazette. The notice must state the name of the company, the date of the winding up order, and the name of the liquidator.
Verification of debts. The liquidator must verify the company's debts. This involves contacting the company's creditors and confirming the amount of debt that is owed to each creditor.
Payment of debts. The liquidator must pay the company's debts in accordance with the order of priority set out in the Companies Act. The first priority is to pay the costs of the winding up. The second priority is to pay the preferential creditors. The third priority is to pay the unsecured creditors.
Distribution of assets. Once all of the company's debts have been paid, the liquidator will distribute any remaining assets to the company's shareholders. The assets will be distributed in accordance with the company's articles of association.
Striking off the register. Once the winding up process is complete, the liquidator will apply to the Accounting and Corporate Regulatory Authority (ACRA) to strike the company off the register of companies. This will effectively dissolve the company and it will no longer exist as a legal entity.
The winding up of a company can be a complex and time-consuming process. It is important to seek professional advice if you are considering winding up your company.
What is Liquidation or Winding-Up
Liquidation is a process where the company’s assets are seized and realised, with the resulting proceeds used to pay off its debts and liabilities.
Any surplus is then distributed among the contributories of the company according to their rights and interests, or otherwise dealt with as the constitution of the company directs.
Upon the completion of the liquidation, the company goes into dissolution and it ceases to exist.
The purposes of a liquidation are:
to ensure a just distribution of the company's assets among creditors and contributories
to terminate the company's existence by its eventual dissolution
Just Distribution of Assets
When a company is being wound up, the company’s business ceases to operate and its assets and affairs are handed over to an independent liquidator whose powers, duties and functions are regulated by the Insolvency, Restructuring and Dissolution Act 2018.
The rights of unsecured creditors over the company’s assets are virtually “frozen” upon the commencement of the liquidation to avoid a further deterioration of the company’s financial position and proliferation of its liabilities.
Unsecured creditors are paid on a pari passu basis, i.e. they are paid out of the company’s assets equally. Any surplus is then distributed among the contributories of the company.
Reasons for Winding up a Company
Company has ceased business activities
Management deadlock
Oppression - shareholders dispute under section 216 of the Companies Act (Cap. 50)
Corporate or financial restructuring of the group to which the company belongs
Minimise tax liabilities or maximise tax advantages for the group to which the company belongs
Breach of statutory provisions, including offences committed
Company acting outside its scope of activities
What are the Various Types of Winding Up
1. Members’ voluntary winding up
The company’s contributories (also known as members or shareholders) may pass a resolution that the company be wound up and that a liquidator be appointed.
The liquidation commences at the time of passing the resolution. It is adopted where the company is able to pay its debts in full within 12 months after the commencement of winding up. The directors of the Company are required to file a declaration of solvency.
2. Creditors’ voluntary winding up
If the company is not able to meet its liabilities, the company can convene a meeting with its creditors to consider its proposal for a voluntary winding up of the company.
If a resolution is passed in favour of the winding up, the company will appoint a liquidator, subject to any preference the creditors may have as to the choice of liquidator.
3. Compulsory winding up
Under section 124 of the Insolvency, Restructuring and Dissolution Act 2018, the company itself, creditors, contributories, liquidator, judicial manager or the Minister may present a winding up application to the High Court.
The applicant has to pay a winding up deposit of $10,400 to the Official Receiver, and the Court may appoint the Official Receiver or an insolvency as the liquidator of the company.
The winding up is deemed to have commenced as at the date of the presentation of the winding up application.
WINDING UP
Modes of Winding Up
The winding up of a company may be either —
by the Court; or
voluntary.
Liability of Present and Past Members as Contributories, and Unlimited Liability of Directors
On a company being wound up, every present and past member is liable to contribute to the assets of the company to an amount sufficient for payment of the debts and liabilities of the company and the costs, charges and expenses of the winding up, and for the adjustment of the rights of the contributories among themselves, subject to the following qualifications:
a past member is not liable to contribute if the past member has ceased to be a member for one year or more before the commencement of the winding up;
a past member is not liable to contribute in respect of any debt or liability of the company contracted after the past member ceased to be a member;
a past member is not liable to contribute unless the existing members are unable to satisfy the contributions required to be made by the existing members;
in the case of a company limited by shares, no contribution is required from any member exceeding the amount, if any, unpaid on the shares in respect of which that member is liable as a present or past member;
in the case of a company limited by guarantee, no contribution is required from any member exceeding the amount undertaken to be contributed by that member to the assets of the company in the event the company is wound up;
a sum due to any member in that member’s character of a member by way of dividends, profits or otherwise is not a debt of the company payable to that member, in a case of competition between that member and any other creditor who is not a member, but any such sum may be taken into account for the purpose of the final adjustment of the rights of the contributories among themselves.
On the winding up of a company limited by guarantee, every member is liable, in addition to the amount undertaken to be contributed by the member to the assets of the company in the event the company is wound up, to contribute to the extent of any sums unpaid on any shares held by the member.
Circumstances in which Company may be Wound Up Voluntarily
A company may be wound up voluntarily —
when the period (if any) fixed for the duration of the company by the constitution of the company expires or, where the constitution of the company provides that the company is to be dissolved on the occurrence of an event, when that event happens, and the company in general meeting has passed a resolution requiring the company to be wound up voluntarily; or
if the company so resolves by special resolution.
A company must —
within 7 days after the passing of a resolution for voluntary winding up, lodge a copy of the resolution with the Registrar of Companies; and
within 10 days after the passing of the resolution, give notice of the resolution in the Gazette and at least one English local daily newspaper.
Provisional Liquidator and Commencement of Voluntary Winding Up
Where the directors of a company have made and lodged with the Official Receiver a statutory declaration in the prescribed form, and have lodged a declaration in the prescribed form with the Registrar of Companies —
that the company cannot by reason of its liabilities continue its business; and
that meetings of the company and of its creditors have been summoned for a date within 30 days after the date of the declaration,
the directors must immediately appoint a licensed insolvency practitioner to be the provisional liquidator.
A provisional liquidator has and may exercise all the functions and powers of a liquidator in a creditors’ winding up, subject to such limitations and restrictions as may be prescribed by regulations.
The appointment of a provisional liquidator continues for 30 days after the date of the appointment of the provisional liquidator, or until the appointment of a liquidator, whichever first occurs.
Notice of the appointment of a provisional liquidator, together with a copy of the statutory declaration lodged with the Official Receiver, must be advertised, within 14 days after the appointment of the provisional liquidator, in the Gazette and at least one English local daily newspaper.
A provisional liquidator is entitled to receive such salary or remuneration by way of percentage or otherwise as is prescribed.
A voluntary winding up commences —
where a provisional liquidator has been appointed before the resolution for voluntary winding up was passed, at the time when the declaration was lodged with the Registrar of Companies; or
in any other case, at the time of the passing of the resolution for voluntary winding up.
Effect of Voluntary Winding Up
The company must, starting on the commencement of the winding up, cease to carry on its business, except so far as is in the opinion of the liquidator required for the beneficial winding up of the company.
Despite anything to the contrary in the constitution of the company, the corporate state and corporate powers of the company continue until the company is dissolved.
Any transfer of shares, not being a transfer made to or with the sanction of the liquidator, and any alteration in the status of the members made after the commencement of the winding up, are void.
CREDITORS’ VOLUNTARYY WINDING UP
Meeting of Creditors
The company must cause a meeting of the creditors of the company to be summoned for the day, or the day next following the day, on which there is to be held the meeting of the company at which the resolution for voluntary winding up is to be proposed, and must cause the notices of the meeting of creditors to be sent to the creditors simultaneously with the sending of the notices of the meeting of the company.
The company must convene the meeting of the creditors at a time and place convenient to the majority in value of the creditors, and must —
send notice of the meeting to the creditors at least 10 days before the date of the meeting; and
send to each creditor, with the notice, a statement showing the names of all creditors and the amounts of their claims.
The company must cause notice of the meeting of the creditors to be advertised at least 7 days before the date of the meeting in the Gazette and at least one English local daily newspaper.
The directors of the company must —
cause a full statement of the company’s affairs showing in respect of assets the method and manner in which the valuation of the assets was arrived at, together with a list of the creditors and the estimated amount of their claims to be laid before the meeting of the creditors; and
appoint one of their number to attend the meeting.
The appointed director and the secretary must attend the meeting of the creditors and disclose to the meeting the company’s affairs and the circumstances leading up to the proposed winding up.
The creditors may appoint one of their number, or the director appointed, as the chairperson to preside at the meeting.
The chairperson must determine at the meeting whether the meeting has been held at a time and place convenient to the majority in value of the creditors, and the chairperson’s decision is final.
If the chairperson decides that the meeting has not been held at a time and place convenient to that majority, the meeting lapses and a further meeting must be summoned by the company as soon as is practicable.
Liquidator
The company must, and the creditors may at their respective meetings, nominate a person to be liquidator for the purpose of winding up the affairs and distributing the assets of the company, and if the creditors and the company nominate different persons, the person nominated by the creditors is to be liquidator, and if no person is nominated by the creditors, the person nominated by the company is to be liquidator.
Where different persons are nominated, any director, member or creditor may, within 7 days after the date on which the nomination was made by the creditors, apply to the Court for an order directing that the person nominated as liquidator by the company is to be liquidator instead of, or jointly with, the person nominated by the creditors.
The committee of inspection or, if there is no such committee, the creditors may fix the remuneration to be paid to the liquidator.
On the appointment of a liquidator, all the powers of the directors cease, except so far as the committee of inspection or, if there is no such committee, the creditors approve the continuance of those powers.
If a liquidator, other than a liquidator appointed by or by the direction of the Court, dies, resigns or otherwise vacates the office, the creditors may fill the vacancy and, for the purpose of filling the vacancy, a meeting of the creditors may be summoned by any 2 of their number.
Liquidator’s Right to Request for Statements of Concurrence
The liquidator may require any director who has not made the statement of affairs to submit a statement of concurrence verified by affidavit, stating that that director concurs in the statement of affairs.
A statement of concurrence may be qualified in respect of matters dealt with in the statement of affairs, where the maker of the statement of concurrence —
is not in agreement with the persons making the statement of affairs;
considers the statement of affairs to be erroneous or misleading; or
is without the direct knowledge necessary for concurring in the statement of affairs.
Every person who makes a statement of concurrence must submit the statement to the liquidator within 14 days after the request to submit the statement of concurrence, or within such extended time as the liquidator or the Court may specify.
Committee of Inspection
The creditors at the meeting or at any subsequent meeting may, if they think fit, appoint a committee of inspection consisting of not more than 5 persons, whether creditors or not, and if such a committee is appointed, the company may, either at the meeting at which the resolution for voluntary winding up is passed or at any time subsequently in general meeting, appoint such number of persons (but not more than 5) as the company thinks fit to act as members of the committee.
The creditors may, if they think fit, resolve that all or any of the persons so appointed by the company ought not to be members of the committee of inspection. If the creditors so resolve, the persons mentioned in the resolution are not qualified to act as members of the committee.
Property and Proceedings
Any attachment, sequestration, distress or execution put in force against the estate or effects of the company after the commencement of a creditors’ voluntary winding up is, unless the Court otherwise orders, void.
After the commencement of the winding up, no action or proceeding may be proceeded with or commenced against the company except by the leave of the Court and subject to such terms as the Court may impose.
Distribution of Property of Company
Subject to the provisions as to preferential payments, the property of a company must, on its winding up, be applied pari passu in satisfaction of its liabilities and, subject to that application, must, unless the constitution of the company otherwise provides, be distributed among the members according to their rights and interests in the company.
Annual Meeting of Members and Creditors
If the winding up continues for more than one year, the liquidator must —
summon a general meeting of the company and the creditors, at the end of the first year after the commencement of the winding up and at the end of, or not more than 3 months after the end of, each succeeding year; and
lay before the meeting an account of the liquidator’s acts and dealings, and of the conduct of the winding up during the preceding year.
The liquidator must cause the notices of the meeting of creditors to be sent to the creditors simultaneously with the sending of the notices of the meeting of the company.
Final Account and Dissolution
As soon as the affairs of the company are fully wound up, the liquidator must —
make up an account showing how the winding up has been conducted and the property of the company has been disposed of; and
upon doing so, call a meeting of the company and the creditors, for the purpose of laying before the meeting the account and giving any explanation of the account.
The meeting must be called by an advertisement —
which must be published in the Gazette and at least one English local daily newspaper;
which must specify the time, place and object of the meeting;
which must be published at least 30 days before the meeting; and
a copy of which must be sent to the Official Receiver within 7 days after the publication of the advertisement.
The liquidator must within 7 days after the meeting lodge with the Registrar of Companies and the Official Receiver —
a return of the holding and date of the meeting, with a copy of the account attached to the return; or
if a quorum is not present at the meeting, a return (with account attached) that the meeting was duly summoned and that no quorum was present at the meeting.
The quorum at a meeting of the company and the creditors is 2 members and 2 creditors.
On the expiration of 3 months after the lodging of the return with the Registrar of Companies and with the Official Receiver, the company is dissolved.
Costs
All proper costs, charges and expenses of and incidental to the winding up, including the remuneration of the liquidator, are payable out of the assets of the company.
Summoning, Proof of Notice, and Quorum of Meetings
The liquidator or other person summoning a meeting of creditors, meeting of contributories, or meeting of creditors and contributories, must —
summon such meeting by causing notice of the time and place of the meeting to be advertised, at least 7 days before the date of the meeting, in the Gazette and at least one English local daily newspaper; and
not less than 7 days before the day appointed for the meeting, send, to every person appearing by the company’s books to be a creditor of the company, notice of the meeting of creditors or meeting of creditors and contributories, and, to every person appearing by the company’s books or otherwise to be a contributory of the company, notice of the meeting of contributories or meeting of creditors and contributories.
The notice to each creditor must be sent to the address given in the creditor’s proof or, if the creditor has not proved, to the address given in the statement of affairs of the company, or to such other address as may be known to the person summoning the meeting.
The notice to each contributory must be sent to the address mentioned in the company’s books as the address of such contributory, or to such other address as may be known to the person summoning the meeting.
A meeting must not act for any purpose except the election of a chairperson, the proving of debts and the adjournment of the meeting unless there are present or represented at the meeting —
in the case of a meeting of creditors, at least 3 creditors entitled to vote;
in the case of a meeting of contributories, at least 3 contributories; or
all the creditors entitled to vote or all the contributories, if the number of the creditors entitled to vote or the number of contributories (as the case may be) does not exceed 3.
If within half an hour after the time appointed for the meeting a quorum of creditors or contributories is not present or represented, the meeting must be adjourned to the same day in the following week at the same time and place, or to such other day as the chairperson may appoint, being not earlier than the 8th day, and not later than the 21st day, after the day on which the meeting was adjourned.
If within half an hour after the time appointed for the adjourned meeting a quorum of creditors or contributories is not present or represented, the adjourned meeting must not be further adjourned.
Arrangement when Binding on Creditors
Any arrangement entered into between a company about to be or in the course of being wound up and its creditors is, subject to the right of appeal, binding on the company if sanctioned by a special resolution, and on the creditors if acceded to by 75% in value and 50% in number of the creditors, every creditor for under $500 being reckoned in value only.
Books to be Kept by Liquidator, and Delivery of Property to Liquidator
Every liquidator must keep proper books in which the liquidator must cause to be made entries or minutes of proceedings at meetings, and any creditor or contributory may personally or by his or her agent inspect the books.
Notice of Appointment and Address of Liquidator
A liquidator must —
within 14 days after the liquidator’s appointment, lodge with the Registrar of Companies and with the Official Receiver notice in the prescribed form of the liquidator’s appointment and of the address of the liquidator’s office; and
within 14 days after any change in the address of the liquidator’s office, lodge with the Registrar of Companies and with the Official Receiver notice in the prescribed form of the change.
Liquidator’s Accounts
Every liquidator must lodge with the Official Receiver, in the prescribed form and verified by statutory declaration, an account of the liquidator’s receipts and payments and a statement of the position in the winding up —
(a) within one month after the expiration of each of the following periods:
(i) a period of 12 months after the date of the liquidator’s appointment;
(ii) every subsequent period of 12 months;
(b) within one month after the liquidator ceases to act as liquidator; and
(c) immediately after obtaining an order of release.
Every liquidator must, within 7 days after lodging the account and statement, also lodge with the Registrar of Companies a notice in the prescribed form of the lodgment of that account and statement.
A liquidator must keep a copy of the account or, if audited, a copy of the audited account, and that copy must be open to the inspection of any creditor or any person interested at the office of the liquidator.
The liquidator must —
give notice that the account has been made up to every creditor and contributory, when next forwarding any report, notice of meeting, notice of call or dividend; and
in such notice, inform the creditors and contributories at what address and between what hours the account may be inspected.
Notification that Company is in Liquidation
Where a company is being wound up —
every invoice, order for goods, business letter, order form or other correspondence (whether in hard copy, electronic or any other form) issued by or on behalf of the company, a liquidator of the company, being a document on or in which the name of the company appears; and
every Internet website of the company on or in which the name of the company appears,
must have the words “in liquidation” added after the name of the company where it first appears in that document or Internet website.
A provisional liquidator appointed over a company must add the words “in provisional liquidation” must be after the name of the company instead of the words “in liquidation”.
Books and Papers of Company and Liquidator
When a company has been wound up, the liquidator must retain the books and papers for a period of 5 years after the date of dissolution of the company, and at the expiration of that period may destroy the books and papers.
Investment of Surplus Funds on General Account
Whenever the cash balance standing to the credit of any company in liquidation is in excess of the amount which, in the opinion of the committee of inspection or (if there is no committee of inspection) of the liquidator, is required for the time being to answer demands in respect of the estate of the company, the liquidator may, if so directed in writing by the committee of inspection or (if there is no committee of inspection) on the liquidator’s own motion, —
invest in securities issued by the Government; or
place on deposit at interest with any bank,
the whole or any part of the excess, and any interest received in respect of the money invested or deposited forms part of the assets of the company.
Whenever any part of the money so invested or deposited is, in the opinion of the committee of inspection or (if there is no committee of inspection) of the liquidator, required to answer any demands in respect of the company’s estate, the liquidator may, if so directed by the committee of inspection or (if there is no committee of inspection) on the liquidator’s own motion, arrange for the sale or realisation of such part of those securities, or the withdrawal of the whole or such part of the deposit, as is necessary.
Unclaimed Assets to be Paid to Official Receiver
Where a liquidator has in the liquidator’s hands or under the liquidator’s control —
any unclaimed dividend or other moneys that have remained unclaimed for more than 6 months after the date on which the dividend or other moneys became payable; or
after making final distribution, any unclaimed or undistributed moneys arising from the property of the company, and the moneys remain unclaimed after the expiration of 30 days after the date the notice is given, the liquidator must immediately pay those moneys to the Official Receiver to be placed to the credit of the Companies Liquidation Account, and is entitled to the prescribed certificate of receipt for the moneys so paid, and that certificate is an effectual discharge to the liquidator in respect of the moneys so paid.
A liquidator who has in the liquidator’s hands or under the liquidator’s control any moneys must give notice, of the intended payment to the Official Receiver of those moneys if those moneys remain unclaimed after the expiration of 30 days after the date the notice is given, to the person entitled to those moneys by —
sending a copy of the notice to that person at that person’s last known address; and
if there is reason to believe that the copy of the notice may not be effective in bringing the intended payment to that person’s attention, an advertisement published in at least one English local daily newspaper.
The interest arising from the investment of the moneys standing to the credit of the Companies Liquidation Account must be paid into the Consolidated Fund.
Expenses of Winding Up where Assets Insufficient
A liquidator is not liable to incur any expense in relation to the winding up of a company unless there are sufficient available assets.
Priority of Debts
In a winding up there must be paid in priority to all other unsecured debts —
first, the costs and expenses of the winding up incurred by the liquidator of the company, including the costs, expenses and remuneration of liquidator;
second, any other costs and expenses of the winding up, including the remuneration of the liquidator and the costs of any audit carried out;
third, the costs of the applicant for the winding up order;
all wages or salary (whether or not earned wholly or in part by way of commission), including any amount payable by way of allowance or reimbursement under any contract of employment or any award or agreement regulating conditions of employment of any employee;
fifth, the amount due to an employee as a retrenchment benefit or ex gratia payment under any contract of employment or any award or agreement that regulates conditions of employment, whether such amount becomes payable before, on or after the commencement of the winding up;
sixth, all amounts due in respect of work injury compensation under the Work Injury Compensation Act (Cap. 354) accrued before, on or after the commencement of the winding up;
seventh, all amounts due in respect of contributions payable, during a period of 12 consecutive months commencing not earlier than 12 months before and ending not later than 12 months after the commencement of the winding up, by the company as the employer of any person, under any written law relating to employees’ superannuation or provident funds or under any scheme of superannuation which is an approved scheme under the Income Tax Act (Cap. 134);
eighth, all remuneration payable to any employee in respect of vacation leave or, in the case of the employee’s death, to any other person in the employee’s right, accrued in respect of any period before, on or after the commencement of the winding up; and
ninth, the amount of all tax assessed, and all goods and services tax due, under any written law before the commencement of the winding up, and all tax assessed under any written law at any time before the time fixed for the proving of debts has expired.
“employee” means an individual who has entered into or works under a contract of service with an employer, and includes a subcontractor of labour;
“ex gratia payment” means an amount payable to an employee on the winding up of a company or on the termination of the employee’s service by his or her employer on the ground of redundancy or by reason of any re‑organisation of the employer, profession, business, trade or work, and “an amount payable to an employee” for these purposes means an amount ascertained from any contract of employment, award or agreement;
“retrenchment benefit” means an amount payable to an employee on the winding up of a company or on the termination of the employee’s service by his or her employer on the ground of redundancy or by reason of any re‑organisation of the employer, profession, business, trade or work, and “an amount payable to an employee” for these purposes means an amount ascertained from any contract of employment, award or agreement, or if no amount is so ascertainable, such amount as is determined by the Commissioner for Labour or by an Employment Claims Tribunal constituted under section 4 of the State Courts Act (Cap. 321);
“wages or salary” includes —
all arrears of money due to a subcontractor of labour;
any amount payable to an employee on account of wages or salary during a period of notice of termination of employment or in lieu of notice of such termination, whether such amount becomes payable before, on or after the commencement of the winding up; and
any amount payable to an employee, on termination of the employee’s employment, as a gratuity under any contract of employment or any award or agreement that regulates the conditions of the employee’s employment, whether such amount becomes payable before, on or after the commencement of the winding up.
The debts in each class rank in the order specified , but as between debts of the same class rank equally between themselves, and must be paid in full, unless the property of the company is insufficient to meet them, in which case the debts of the same class abate in equal proportions between themselves.
Where any payment has been made to any employee of the company on account of wages, salary or vacation leave out of money advanced by a person for that purpose, the person by whom the money was advanced, in a winding up —
has a right of priority in respect of the money so advanced and paid, up to the amount by which the sum in respect of which the employee would have been entitled to priority in the winding up has been diminished by reason of the payment; and
has the same right of priority in respect of that amount as the employee would have had if the payment had not been made.
So far as the assets of the company available for payment of general creditors are insufficient to meet any preferential debts and any amount payable in priority, those debts —
have priority over the claims of the holders of debentures under any floating charge created by the company (which charge, as created, was a floating charge); and
must be paid accordingly out of any property comprised in or subject to that charge.
Where the company is under a contract of insurance (entered into before the commencement of the winding up) insured against liability to third parties, then if any such liability is incurred by the company (whether before, on or after the commencement of the winding up) and an amount in respect of that liability is or has been received by the company or the liquidator from the insurer, the amount must, after deducting any expenses of or incidental to getting in such amount, be paid by the liquidator to the third party in respect of whom the liability was incurred, to the extent necessary to discharge that liability or any part of that liability remaining undischarged, in priority to all payments in respect of the debts.
If the liability of the insurer to the company is less than the liability of the company to the third party, nothing limits the rights of the third party in respect of the balance.
Transfer or Assignment of Company’s Property to Trustees
Any transfer or assignment by a company of all its property to trustees for the benefit of all its creditors made before the commencement of the winding up is void.
This does not apply to any transfer or assignment of a company’s property pursuant to the terms of a compromise or an arrangement proposed by the company under section 210 of the Companies Act or section 71, that is approved by the creditors.
Early Dissolution of Company Administered by Liquidator
Where a liquidator of a company has reasonable cause to believe that —
the realisable assets of the company are insufficient to cover the expenses of the winding up; and
the affairs of the company do not require any further investigation,
the liquidator may, after obtaining the written consent of the Official Receiver, give a notice that, at the expiration of 30 days after the date of that notice, the name of the company mentioned in that notice will be struck off the register by the Registrar of Companies, and the company will be dissolved, unless —
an order is made under section 211(4) that the name of the company not be struck off the register and that the company not be dissolved.
Outstanding Assets of Defunct Company to Vest in Official Receiver
Where, after a company has been dissolved, there remains any outstanding property, movable or immovable, including things in action and whether in or outside Singapore, which was vested in the company or to which the company was entitled, or over which the company had a disposing power at the time the company was so dissolved, but which was not got in, realised upon or otherwise disposed of or dealt with by the company or its liquidator, such property (except called and uncalled capital), is and becomes vested in the Official Receiver for all the estate and legal or equitable interest in such property of the company or its liquidator at the date the company was dissolved, together with all claims, rights and remedies which the company or its liquidator then had in respect of such property.
How Bestar can Help
Bestar can help you with the winding up of your company in Singapore in the following ways:
Advise on the regulatory requirements. We will advise you on the regulatory requirements for winding up a company in Singapore. This includes the requirements for appointing a liquidator, publishing a notice of winding up, verifying debts, paying debts, distributing assets, and striking off the register.
Assist with the appointment of a liquidator. We will assist you with the appointment of a liquidator. We will help you to identify suitable liquidators and we will liaise with the liquidator on your behalf.
Provide liquidator's services. We can also act as liquidator for your company. We have a team of experienced liquidators who can help you to wind up your company in a timely and efficient manner.
We have a team of experienced professionals who can help you with the winding up of your company in Singapore. We understand the regulatory requirements for winding up companies in Singapore and we have a proven track record of helping clients to wind up their companies successfully.
If you are considering winding up your company, we encourage you to contact us for a consultation. We would be happy to discuss your needs and how we can help you achieve your goals.
Here are some additional benefits of using Bestar to help you with the winding up of your company in Singapore:
We have a deep understanding of the Singapore Companies Act and the regulations governing the winding up of companies.
We have a proven track record of helping clients to wind up their companies successfully.
We offer a wide range of services to help you with every aspect of the winding up process, from appointing a liquidator to distributing assets.
We are committed to providing our clients with the highest level of service and support.
If you are looking for a reliable and experienced partner to help you with the winding up of your company in Singapore, Bestar is the right choice for you.
If you would like to know more, please contact Bestar.
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