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Corporate Recovery Services
Winding-Up or Liquidation is a formal process where an independent officer called liquidator is designated to take over the affairs of a company, realise the assets, and distribute these to the creditors and contriobutors, upon completion of which, the existence of the company is liquidated.
Our Services:
Member's’ Voluntary Winding-Up
Creditors’ Voluntary Winding Up
High Court Winding Up
Judicial Management
A company may wind up for the following reasons:
The company has ceased business activities
Management deadlock
Minimise tax liabilities or maximise tax advantages for the group to which the company belongs
Breach of statutory provisions, including offences committed
A company acting outside its scope of activities
In the event that you plan to cease your business due to inevitable reasons, we can advise and guide you with the best methods applicable to your company in an easy and efficient manner.
We are an approved Insolvency Practitioner who assist our clients from pre-liquidation until completion of winding up. We have extensive experience in all aspects of liquidation, both corporate and personal.
Members' Voluntary Winding-Up
Contributors of the company (also known as members or shareholders) may pass a resolution that the company be wound up and appoint a liquidator. At least 75% of the shareholder’s consent to this mode of dissolution.
Upon passing the resolution, the liquidation process commences. It is introduced where the corporation is able to settle its debts in full within 12 months from the beginning of the liquidation. The company's directors are expected to file a solvency statement.
Our services include:
- Acting as the Liquidator and carrying out all the necessary duties from pre-liquidation to the final dissolution of the Company.
Creditors' Voluntary Winding Up
If the company is unable to satisfy its obligations, the company will convene a meeting with its creditors to consider its plan to wind up the company voluntarily.
The corporation will need to nominate a liquidator if a resolution is passed in favour of the winding-up, subject to any preference the creditors might have as to the option of liquidator. On this, we act as the Liquidator and carrying out all the necessary duties from pre-liquidation to the final dissolution of the Company.
Judicial Management
An alternative corporate rescue mechanism is judicial management. Judicial management is a regime for firms suffering financial distress an opportunity to rehabilitate by providing third parties with temporary shelter from legal proceedings.
We serve as the Judicial Managers or Interim Judicial Managers being an independent professional to handle a company's affairs, business and property and direct the company towards a restructuring process.
High Court 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 court will decide, at the hearing of the application, whether to grant or dismiss it. If the application is granted, an order to wind up the company will be made. The winding up is deemed to have commenced at the time of the application for winding-up.
Section 125 of the Insolvency, Restructuring and Dissolution Act 2018 further states all the grounds under which the Court may liquidate a company. The common grounds for a company to be wound up by the Court include:
Inability to pay its debts
The company is deemed unable to pay its debts under section 125(2)(a) of the Insolvency, Restructuring and Dissolution Act 2018, if a company's creditor, who is owed more than S$15,000, has served a demand for the sum owing at the registered office of the company, and the company has not paid this sum for 3 weeks thereafter.
Just and Equitable
When the Court is of the opinion that it is just and equitable that the company be wound up.