Closing Company – Strike Off
When the director of the company doesn’t want to continue the business and there are modest liabilities to creditors, striking company of the record can be an effective and cheap solution. If you can persuade the creditors to waive their claims or the company hasn’t got any debts, it is simple and economic to strike off. In each client case, practical viability of striking off should be carefully discussed.
What are potential benefits and possible downsides of striking a company off the record? On the up side, compared to putting into CVL (Creditors Voluntary Liquidation), Striking Off is much cheaper. Also, there’s not direct mechanism for reporting on a director’s conduct to ISDU (the Insolvency Service Disqualification Unit) and there are no formal meetings of creditors. A Liquidation claims all assets which are afterwards taken by the crown, while striking off doesn’t demand this; you have the chance to purchase asset from your (soon to be ex) company.
On the down side, striking off can only occur with creditor support and zero debts. Director has to be personally liable for all the unsettled debts and dissatisfied creditors are able to apply to the courts and bring hostile winding up actions. Instead of the simple immediacy of Creditors Voluntary Liquidation, Striking Off means long delay.
I’ve asked experts for striking off services for company in Singapore what are the benefits of using their services when striking off. First of all, it saves time because all the work would be done by the hired experts at their own offices. These case managers can handle all the third party relations, calling and mailing and they prepare a set of reports for any related parties and creditors. The immediate actions would be begun and you’re guaranteed to reach the wanted outcome. In any case, using striking off services ensures that once you close the company, it stays shut (forever).