STAGE 2: WINDING-UP PETITION. Going through the procedural aspects, even after the digitization, it is always challenging to start a business/ company. The winding up order shall be deemed to be notice of discharge to the officers and employees of the company except when the business of the company is continued [Sec. The âsolvencyâ test is the key determinant differentiating a members' voluntary winding-up from a creditors' voluntary winding-up. In case the petition, for winding up of the company, has been filed by any person other than the company, then, the Tribunal would direct the company to file its objection, against the petition, along with the statement of affairs within a period of 30 days. It is very useful for business owners to understand the difference between compulsory and voluntary liquidation as sometimes, businesses have no choice but to compulsorily liquidate. The credit reporting agencies had maintained an entry on the filing of the winding up petition. This course will discussed among others the overview of voluntary winding up and compulsory winding up, procedure for voluntary winding up and compulsory winding up, appointment of liquidator, power of liquidator and power of the Court on hearing a winding up petition. The credit reporting agencies such as CTOS would have picked up on the public information on the winding up. Procedure for Winding up an Insolvent Company Voluntarily Foreword 1. The company has defaulted in filing its financial statement or annual returns for five consecutive financial years. Looking to wind up your Company with ease? The list is by no means exhaustive but I will only deal with three topics: As an introduction, the term ‘director’ means any person who holds the position of director by whatever name called. Court Process for Winding Up: Compulsory Winding Up. The first step is the filing of a petition for winding up of a company, and as already mentioned above, the petition can be filed by only selected categories of person. Legally need your advice how to go about it. Proxies as per Section 105 of the Companies Act 2013, A Quick Guide to Learning Agility for a Business Organization. 13 The petitioners that may petition to wind-up the company are listed in Section 217(1) of CA 1965, they are the company itself, any 11 â¦ The language of the advertisement should be in the regional language of the respective area and in English. The liquidator does have the power to apply for the public or private examination of directors in Court. Pass an order for winding up of the company (with or without cost); or. This is known as a compulsory winding up. Many say that striking off a company is a simple and efficient way of closing down a company. Application of winding up provisions; Modes of winding up; Qualification of liquidator; Government bound by certain provisions; ... LAW OF MALAYSIA . Winding up by Court. Currently, working as a 'freelance content writer' and associated with the top most leading sites. There are 2 types of winding up: compulsory (by court order) and voluntary. As an example, I acted in a case where two directors had signed a company cheque to pay the company’s debt owing to a creditor. 445 (3)]. Under section 217 of the Companies Act, 1965 the company itself, creditors, contributories, liquidator or the Minister may present a winding up application to the High Court.Section 218(1) of the Companies Act, 1965 states all the grounds under which the Court may liquidate a company. In recent years, I find that creditors are now more willing to attempt this route under fraudulent trading to try to attach personal liability on a director. Mr Lee – need your advice badly re the Sdn Bhd company which was taken over without knowingly that the company is already in deep trouble and bad debts as a matter of trust when they bought over. You may need to answer questions and the liquidator will be expecting you to prepare this Statement of Affairs. It is done through the presentation of a petition in front of court authorities. However, there are two types of voluntary winding up where one takes place when the company is solvent (memberâs voluntary winding up) whereas another is when the company is insolvent (creditorâs voluntary winding up) . A voluntary winding up takes place through a mutual agreement between the shareholders and company owner. The registrar shall also receive the copy of the petition, and he needs to submit his views to the Tribunal within 60 days of the receipt of the petition.