Strike Off of Limited Company
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Strike Off Company (Sdn Bhd)
Strike Off
Under Section 308 of the Companies Act, the Registrar has the power to remove a company's name from the register if there are reasonable grounds for believing that the company has ceased trading or otherwise ceased to carry on business. The company will then be deemed to have been dissolved upon publication of a notice of deregistration in the Gazette.
Under normal circumstances, the Registrar will not exercise the power stipulated in Article 308, but will let the company take the initiative to complete the deregistration. Entrepreneurs who do not intend to use the company for business are strongly advised not to abandon the company as this may result in hefty fines.
Conditions for cancellation
- Dormant and inactive, i.e. no revenue is received and no expenses are incurred
- Obtain the approval of the majority of shareholders
- No assets or liabilities
- No bank account
- No unpaid taxes or other liabilities, including complaints with any government agencies such as EPF, SOCSO, LHDN, etc.
- SSM has no outstanding charges or fines under CA 1965
- Updated with the latest information on SSM
- Not involved in any legal proceedings within or outside Malaysia
- There is no collateral in the collateral register
- No capital returns are made to shareholders
- Not a subsidiary of a holding company or other body corporate
- Not a guarantor company
*This decision can be challenged by anyone who wishes the company to be reinstated and they can apply to the court to have the company's name reinstated on the register under the same terms. But they must prove to the court that the company was actually still operating when it was deregistered.
19 Apr 2024
