How to Liquidate a Company in Malaysia
Updated on Thursday 15th June 2017
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Businessmen who want to liquidate their company in Malaysia can perform this action by respecting a set of rules and regulations, prescribed by the commercial legislation applicable here. The process of liquidation is necessary when the company can no longer pay its debts; an investor can proceed to voluntary liquidation, which signifies that the Court did not have to intervene in order to close down the company. The process itself will be carried out by an authorized liquidator, but it is advisable to receive the legal assistance of our law office in Malaysia, as the attorneys can offer specific details on the steps of the liquidation process.
Reasons to liquidate a business in Malaysia
The local legislation provides a number of reasons for which a Malaysian company can be shut down. Some of the most important reasons are the following:
• the company did not have any business operations in Malaysia after its incorporation;
• the management considers there are no reasons to start any business activities;
• the company does not have funds to sustain its activity.
Our lawyers invite you to watch the following video on the company liquidation process in Malaysia:
Corporate liquidation law in Malaysia
The Companies Commission of Malaysia is the main regulatory body for the liquidation process; the institution applies the legislation available under the Companies Act 1965 which states that a Registrar can take out a company from its registration documents if the company is not carrying any operations. The Registrar can appeal to this measure when the documents registered by the company reveal the financial situation of the company; at the same time, the Registrar can also shut down a company if the directors/shareholders have submitted an application in this sense.
In order to apply for the liquidation procedure, an investor should provide specific information, as prescribed by the Guidelines establish for the insolvency of a Malaysian company, under the provisions of the Companies Act; our law firm can provide you with an extensive presentation on the entire procedure.
The documents required at the Companies Commission of Malaysia have to contain a Statement by Liquidator, as stipulated by the Section 308 of the Act.
If you need further information on the liquidation process of a Malaysian company, please contact our law office for legal representation on this matter.