Ways to Winding up Company in Singapore
Winding up or liquidation is the process by which a company’s assets are collected and sold in order to pay its debts. Once the winding up has been completed, the company will then cease to exist.
While striking off a company is a straightforward process, there are different ways to winding up company in Singapore. The 3 different ways to wind up a company in Singapore are; Member Voluntary Liquidation, Creditor Voluntary Liquidation and Court Winding up.
Winding up company in Singapore on your own is almost impossible. Companies will need to appoint a professional liquidator to settle all the necessary administrative works to close down the company.
How to Insolvent Company Wind Up Singapore
When a company is said to be insolvent, it means that the company cannot pay its debt as they fall due.
For insolvent companies, directors and shareholders may consider closing down the company by the way of Creditor Voluntary Liquidation. This method is initiated by the company to hold a general meeting and seek approval from majority of creditors (75% or more) on the business closure.
As for court liquidation, a company may be wound up under a court order if the court is of view that it is just and equitable to wind up the company. For all 3 cases, a liquidator need to be appointed to look into the affairs of the company and settle all the necessary procedures.
Need more in-depth understanding insolvent company wind up in Singapore? Give our professional liquidators a quick call today! We will try our utmost best to have a brief understanding of your company situation and we’ll advise you the most appropriate route to wind up your company.
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