Notes: This article serves as a general guide only. FAQ about winding-up of companies Winding-up of a Company by the Court: Your Right as a Creditor The PRA has set out proposed rules on winding down trading activities that it hopes will ensure the safety of the domestic market by minimizing the harm that a failing investment company could.
See the links below for more information about winding-up of a company. Duties of directors of a wound-up company More information If the directors fail to perform such duties, such as failure to keep proper books and records and failure to prepare a statement of affairs, the Official Receiver’s Office may take prosecution actions and disqualification actions against the directors.
On the appointment of a provisional liquidator or the making of the winding-up order, the powers of the directors of the company will cease but still they have certain duties to perform. Simple Guide on Compulsory Winding-up of Companies Director’s Duties in Compulsory Winding-up employee) who is qualified for receiving legal aid under the Legal Aid Ordinance and Rules may apply to the Legal Aid Department for assistance in filing a winding-up petition. A solicitor is normally instructed by the petitioner to prepare and file the winding-up petition.Īny person (e.g.
the company has by special resolution resolved that the company be wound up by the Court.Ī creditor, a shareholder or the company itself can file a winding-up petition against the company. the Court is of the opinion that it is just and equitable that the company should be wound up or. The companys assets are sold off and then used to pay off the companys debts. the company is unable to pay a debt of $10,000 or above The winding up of a company is the process of bringing an end to a company. Compulsory winding-up by the High Court of the Hong Kong Special Administrative Region (“the Court”)Ī limited company may be wound up by the Court in the circumstances set out in the Companies (Winding Up and Miscellaneous Provisions) Ordinance. members’ (shareholders’) voluntary winding-up and. Overview of winding-up procedures Modes of Winding-upĪ company may be wound up by the court or voluntarily. Winding-up would bring a company to an end. If the company is solvent and able to pay its debts, the main options available to ensure a clean closure of the company are: Striking off the company While this is the easiest and cheapest option, striking the company off from the Companies. Make a list of all states in which the company is obligated to pay taxes. Most importantly, you need to get a good handle on the financial situation. It generally means that all the assets of the company would be realised (sold off and converted to cash) through a legal process in order to repay its debts. Preparing to Wind Down a Business: What information do you need 1. The term “winding-up” (or “wound-up”) bears a similar meaning of “liquidation”. What Kind of Companies can be Wound-upĪ limited company, which is formed and registered under the Companies Ordinance, can be wound up. This article is a simple guide to sources of information and services of winding up a company.
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