Eg liquidating co
Also, it cannot be struck off if it is involved in insolvency proceedings or a compromise or arrangement with that company’s members and/or creditors (examples may include Schemes of Arrangement).
Liquidation is a more formal procedure that involves the orderly winding up of the company affairs, the appointment of a liquidator to manage the process of realizing the company assets, ceasing of its operations or its sale, the payment of any of its debts and distribution of any surplus assets among its members.
Additionally, an Ordinary Resolution appointing the liquidators (and approving their remuneration) must be passed.
The EGM must be held within five weeks from the Directors’ Meeting executing the abovementioned Solvency Declaration.
Liquidation involves the lodging resolutions with ACRA and Official Receiver and placing an advertisement giving notice of the liquidation of the company and the appointment of liquidators.
ACRA may take about 7 working days to process the application, based on the complexity of the case and whether the documentation submitted in support of the application are sufficiently furnished and/or comprehensive to meet the requirements. Striking off and Liquidation (also know as winding up) both result in a company ceasing to exist.However, very different processes are involved in deriving at either and they should not be confused with one another.The liquidator will then file the relevant notice and advertisements including any settlement of creditors’ claims.Thereafter, the filing of the company’s accounts, the company’s income tax clearance, and the determining of returns (if any) to the company’s shareholders after paying off all the company’s liabilities and debts is attended to.