How to Winding Up Your Debtors
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How do I prove to the court that the company is unable
to pay its debts?
The court may presume that a company as being unable to pay
its debts if any of the following occurs:
A creditor (can be by assignment) who is owed more than
RM500 (yes just RM500) serves a 'statutory demand' (usually
called the 218 notice) for the debts due and it is not paid or
secured, or compounded to your satisfaction, within three
weeks.
The 218 Notice must be served on the company at its
registered office.
OR
A creditor obtains judgment against the company and
execution proceedings is unsatisfied in whole or in part; in
other words the sheriff or bailiff is unable to seize enough
assets to sell in order to satisfy the debt.
OR
It is proved to the satisfaction of the court that the company is
unable to pay its debts when they fall due;
The court may take into account of the contingent and
prospective liabilities of the company.
What happens after winding up?
to pay its debts?
The court may presume that a company as being unable to pay
its debts if any of the following occurs:
A creditor (can be by assignment) who is owed more than
RM500 (yes just RM500) serves a 'statutory demand' (usually
called the 218 notice) for the debts due and it is not paid or
secured, or compounded to your satisfaction, within three
weeks.
The 218 Notice must be served on the company at its
registered office.
OR
A creditor obtains judgment against the company and
execution proceedings is unsatisfied in whole or in part; in
other words the sheriff or bailiff is unable to seize enough
assets to sell in order to satisfy the debt.
OR
It is proved to the satisfaction of the court that the company is
unable to pay its debts when they fall due;
The court may take into account of the contingent and
prospective liabilities of the company.
What happens after winding up?
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