Striking off a company may be done voluntarily by asking CCM to strike off your company (Section 308, Companies Act 1965). This particular section enables the Registrar to strike off (also known as “to dissolve”) your company accordingly. There are some procedures that need to be complied with as follows:
- Unanimous resolution by the shareholders/Directors;
- No outstanding balance/amount owed to CCM or any government departments in the form of penalties or compounds ;
- No unsatisfied charges;
- No outstanding tax balances;
- Not a holding company or a subsidiary of another holdings company;
- Not a Guarantor Corporation;
- No assets or liabilities during strike off or dissolution;
- Not made any return of capital to its shareholders/directors/stakeholders;
- Not involved in any legal issues pertaining the company inside and outside of Malaysia; and
- Any information required is up-to-date.
Apart from the above, under certain situations, a company is not allowed to be dissolved:
- The Company has a large share base;
- The Company has retained profits;
- The Company has recent business activities;
- The Company recently has disposed of a property;
- The Company has unsettled debts; and/or
- The Company is involved in a legal suit and/or action.
In the event that a company has outstanding debts and legal issues, it should appoint a liquidator to handle the matters before the company can be dissolved.