In order to complete this procedure, you can take help from an insolvency practitioner Singapore. These experts have years of practice in handling the liquidation process and they can convert your assets into cash with ease.
If you are running a business in Singapore, you must be aware of several rules & regulations that must be followed at every stage. Even if you are planning to close operations of your company due to some financial disturbance or any other reason, it is important to follow a specific procedure for company liquidation. This process is mainly called winding up and it helps to cease business operations when required. The sole purpose of company liquidation is to sell off all assets and stocks so that the pending debts can be paid off. If some assets are left after fulfilling liabilities, the amount is distributed among shareholders and partners.
What is Court-ordered winding up?
When a company is legally forced to cease its operations, it is called compulsory winding up. As the process involves court orders to lead the relevant activities, it is also known as court-ordered winding up. In such cases, it is necessary for companies to appoint a liquidator that can handle all the assets, their sales as well as distribution to serve liabilities.
The court order for winding up is generally influenced by the complaint filed by the creditors associated with the company. They are the first people who realize the insolvency of a company; mainly because of several unpaid bills. In many cases, winding up appears like a state of bankruptcy where creditors start making efforts to get their money by selling assets of the company. In case the company is not having enough assets to meet pending financial liabilities, the creditors may face considerable economic loss.
What are the powers of a liquidator Singapore (Insolvency Practitioner Singapore)?
The liquidator Singapore can have an extensive range of powers that allow them to realize or sell assets of the company followed by court orders. When permitted, the liquidator can take complete control of the business, they also take care of deadlines, and paper works and keep all involved parties up to date about the process. This is the main reason why experts advise hiring professional insolvency practitioner Singapore to handle all formalities.
They are well aware of the local laws and legal issues. They can assist with the trouble-free closure of the company. Moreover, they can also deal with the formalities of the court to complete the liquidation process. Liquidator Singapore is also allowed to draw, endorse or accept any bill on behalf of the company. They can raise property security and compromise all liabilities, debts, or calls that may otherwise cause more debts to the organization. Furthermore, insolvency practitioner Singapore also handles all prosecutions, suits, and actions or other legal proceedings relevant to the company. Therefore, you can rely on these experts to handle company liabilities before closure.