Several times, businesses do not work as per expectations and then business owners need to take some reliable steps to recover from losses. In such situations, you can take help from professionals at an accredited liquidation company. They have years of experience to handle pending payments and credits on the behalf of companies that are making a loss in the business. However, in order to know more about the process, you should first go through the details below.
What is the meaning of liquidation?
Liquidation is the process is realizing and seizing assets of the company and converting them into cash to pay off liabilities, creditor value, and debts. In case the company goes into a liquidation state, it clearly means that the business operations are stopped and the company may shut down soon. There are so many types of liquidations business sector: winding up and striking off are two commonly used procedures.
The accredited liquidation company in Singapore may help business owners to deal with the formal liquidation process when needed. The accredited liquidator in Singapore has years of experience to handle all formalities and legalities required in the company liquidation process.
What is the meaning of winding up?
Winding up can be defined as a formal liquidation process for a business. In this procedure, the company operations are winded up in a specific order. First of all the company operations are ceased, then they hire a liquidator to supervise all asset realization procedures, if required, the liquidator will make pending debt payments, and ultimately they will distribute surplus assets, if any, among involved parties.
What determines a company’s solvency?
The solvency status of a company determines the following winding-up method. Therefore, it is important to confirm the company’s solvency status in advance. There are generally two common tests that Singapore professionals can conduct to know solvency status: cash flow test where the company is not able to meet current demands for debt and balance sheet test where some deficit is observed after handling all liabilities with the help of available assets of the company.
What is the meaning of Members’ Voluntary Winding up in Singapore?
This method can be applied only if the company is in solvent mode. Being solvent means it can pay all the liabilities and debts within the coming 12 months. This type of winding up is processed by the company directors.
What is the meaning of Creditors’ Voluntary winding up in Singapore?
When the directors of the company are not able to make a solvency declaration in the given time, the process can be undertaken by creditors, and then it is called a creditor’s voluntary winding up.
What is the meaning of Winding up by a Court’s Order in Singapore?
In case the court orders the winding up of a company in Singapore, it is called compulsory winding up and in this case, the accredited liquidator in Singapore is appointed by the court only.
What is a Company Strike off?
The authorized company registration in Singapore is eligible to strike off a company from registration according to section 344 of the Companies Act. The business owners can apply for striking off the company when the business is no longer operational.