{"id":1543,"date":"2015-03-17T14:50:04","date_gmt":"2015-03-17T06:50:04","guid":{"rendered":"http:\/\/alexchanglaw.com\/?p=1543"},"modified":"2021-06-18T14:42:23","modified_gmt":"2021-06-18T06:42:23","slug":"what-is-compulsory-winding-up","status":"publish","type":"post","link":"https:\/\/alexchanglaw.com\/index.php\/what-is-compulsory-winding-up\/","title":{"rendered":"What is compulsory winding-up insolvency liquidation?"},"content":{"rendered":"

Compulsory Winding-up<\/h3>\n

\u201cVersi Bahasa Malaysia\u201d<\/a><\/h5>\n

\u4e2d\u6587\u7248<\/a><\/p>\n

Compulsory winding-up insolvency liquidation\u00a0in Malaysia is pursuant to section 218 of the\u00a0 Act.<\/p>\n

It is a legal process by which the Official Receiver, now known as the Director General of Insolvency or a liquidator is appointed by an order of the court to ‘wind up’ the affairs of a limited company, Sdn Bhd or a Berhad.<\/p>\n

At the end of the process, after a winding up order is granted the liquidation process of the company begins. Winding up does not mean that the creditors of the company will necessarily get paid<\/a>. \u00a0The purpose of winding up a company is to ensure that all the company’s affairs have been dealt with properly.<\/p>\n

How to Get Paid By A Wound Up Company\u00a0<\/b><\/span><\/h3>\n

We have helped a client to achieve just that, click here<\/a> to read more. \u00a0[maxbutton id=”3″]\n

Get Paid Ahead of the Bankers<\/h3>\n

To find out more on how to get paid Ahead of the Bankers- the Concept of Pay Up or Wind Up click here<\/a>.<\/p>\n

Stay of a Winding Up Order<\/h3>\n

A winding up order may not be set aside under section 243 of the Companies Act 1965 or sections 493, 493 the Companies Act 2016. \u00a0Under suitable circumstances, a winding up order may be ‘stayed’, the effects will be similar (but not entirely the same) as a winding up order being set aside. \u00a0[maxbutton id=”2″]\n

Priority Creditors and Distribution of Assets\u00a0\u00a0to the unsecured creditors<\/h3>\n

The duties of the Liquidator \u00a0of a wound up company is as follows:<\/p>\n

    \n
  • ensuring all the Federal Taxes, amounts owing to EPF and SOCSO are paid<\/li>\n
  • ensuring all company contracts (including employee contracts) are completed, transferred or otherwise brought to an end;<\/li>\n
  • carry on the business with a view of eventually ceasing the company’s business;<\/li>\n
  • settling any legal disputes, the liquidator may have to take legal advice to do that;<\/li>\n
  • selling any assets by Public Tender, Public Auction or Private Treaty;<\/li>\n
  • collecting in money owed to the company, the liquidator may have to take legal actions to do that; and<\/li>\n
  • distributing any funds to creditors (which is called a dividend) and returning share capital to the shareholders (any surplus after repayment of all debts and share capital can be distributed to members, that is, shareholders).<\/li>\n<\/ul>\n

    When these actions \u00a0have been completed the Liquidator \u00a0will \u00a0apply to have the company removed from the register at Companies Commission of Malaysia and dissolved.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Compulsory Winding-up \u201cVersi Bahasa Malaysia\u201d \u4e2d\u6587\u7248 Compulsory winding-up insolvency liquidation\u00a0in Malaysia is pursuant to section 218 of the\u00a0 Act. It is a legal process by which the Official Receiver, now known as the Director General of Insolvency or a liquidator is appointed by an order of the court to ‘wind up’ the affairs of a […]<\/p>\n","protected":false},"author":1804,"featured_media":1695,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[60,46],"tags":[48,47,31],"_links":{"self":[{"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/posts\/1543"}],"collection":[{"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/users\/1804"}],"replies":[{"embeddable":true,"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/comments?post=1543"}],"version-history":[{"count":14,"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/posts\/1543\/revisions"}],"predecessor-version":[{"id":9826,"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/posts\/1543\/revisions\/9826"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/media\/1695"}],"wp:attachment":[{"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/media?parent=1543"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/categories?post=1543"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/tags?post=1543"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}